ABILENE, Texas, May 20, 2024 /PRNewswire/ -- The Board of Directors of First Financial Bankshares, Inc. (NASDAQ: FFIN) announced today the appointment of Sally Pope Davis to the Company's Board of Directors. Ms. Davis was also appointed to the Board of Directors of First Financial Bank. She retired from Goldman Sachs in April 2024 after a 34-year career at the firm. Ms. DavisMs. Davis "Sally co-led one of the industry's largest U.S. small cap value funds during her tenure at Goldman Sachs Asset Management, ...

PART I - FINANCIAL INFORMATION [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) Presents the unaudited consolidated financial statements of First Financial Bankshares, Inc. and its subsidiaries for Q1 2024, encompassing balance sheets, earnings, comprehensive earnings (loss), shareholders' equity, cash flows, and notes [Consolidated Balance Sheets – Unaudited](index=5&type=section&id=Consolidated%20Balance%20Sheets%20%E2%80%93%20Unaudited) Provides a snapshot of the company's financial position, detailing assets, liabilities, and shareholders' equity at key reporting dates **Consolidated Balance Sheet Highlights (Dollars in thousands):** | Item | March 31, 2024 | December 31, 2023 | March 31, 2023 | | :--------------------------------- | :------------- | :---------------- | :------------- | | Total assets | $13,191,158 | $13,105,594 | $13,007,986 | | Total cash and cash equivalents | $600,161 | $536,591 | $446,211 | | Securities available-for-sale | $4,658,526 | $4,732,762 | $5,298,557 | | Net loans held-for-investment | $7,139,848 | $7,060,057 | $6,495,397 | | Total deposits | $11,289,808 | $11,138,300 | $10,936,418 | | Total liabilities | $11,699,791 | $11,606,694 | $11,635,133 | | Total shareholders' equity | $1,491,367 | $1,498,900 | $1,372,853 | [Consolidated Statements of Earnings – Unaudited](index=6&type=section&id=Consolidated%20Statements%20of%20Earnings%20%E2%80%93%20Unaudited) Details the company's financial performance over the period, including interest income, expenses, and net earnings **Consolidated Statements of Earnings Highlights (Dollars in thousands, except per share amounts):** | Item | Three-Months Ended March 31, 2024 | Three-Months Ended March 31, 2023 | | :--------------------------------- | :-------------------------------- | :-------------------------------- | | Total interest income | $149,495 | $121,508 | | Total interest expense | $49,253 | $25,222 | | Net interest income | $100,242 | $96,286 | | Provision for credit losses | $808 | $2,781 | | Total noninterest income | $29,383 | $28,007 | | Total noninterest expense | $63,940 | $57,256 | | Net earnings | $53,397 | $52,568 | | Net earnings per share, basic | $0.37 | $0.37 | | Net earnings per share, diluted | $0.37 | $0.37 | | Dividends per share | $0.18 | $0.17 | [Consolidated Statements of Comprehensive Earnings (Loss) – Unaudited](index=8&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Earnings%20%28Loss%29%20%E2%80%93%20Unaudited) Presents net earnings alongside other comprehensive income (loss) items, such as unrealized gains/losses on securities **Consolidated Statements of Comprehensive Earnings (Loss) Highlights (Dollars in thousands):** | Item | Three-Months Ended March 31, 2024 | Three-Months Ended March 31, 2023 | | :-------------------------------------------------------------------------------- | :-------------------------------- | :-------------------------------- | | Net earnings | $53,397 | $52,568 | | Change in unrealized gain (loss) on investment securities available-for-sale, before income taxes | $(48,011) | $97,454 | | Total comprehensive earnings (loss) | $15,468 | $129,547 | [Consolidated Statements of Shareholders' Equity – Unaudited](index=9&type=section&id=Consolidated%20Statements%20of%20Shareholders%27%20Equity%20%E2%80%93%20Unaudited) Outlines changes in shareholders' equity, reflecting net earnings, dividends, stock activities, and other comprehensive income **Key Changes in Shareholders' Equity (Dollars in thousands):** | Item | Three-Months Ended March 31, 2024 | Three-Months Ended March 31, 2023 | | :-------------------------------------------------------------------------------- | :-------------------------------- | :-------------------------------- | | Net earnings | $53,397 | $52,568 | | Stock option exercises/stock unit conversions/restricted stock activity | $1,623 | $884 | | Cash dividends declared | $(25,753) | $(24,267) | | Change in unrealized gain (loss) in investment securities available-for-sale, net of related income taxes | $(37,929) | $76,979 | | Stock-based compensation expense | $1,129 | $952 | | Balances at March 31, 2024 / 2023 | $1,491,367 | $1,372,853 | [Consolidated Statements of Cash Flows – Unaudited](index=10&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows%20%E2%80%93%20Unaudited) Summarizes cash inflows and outflows from operating, investing, and financing activities, showing changes in cash and equivalents **Consolidated Statements of Cash Flows Highlights (Dollars in thousands):** | Activity | Three-Months Ended March 31, 2024 | Three-Months Ended March 31, 2023 | | :--------------------------------------- | :-------------------------------- | :-------------------------------- | | Net cash provided by operating activities | $75,643 | $95,916 | | Net cash provided by (used in) investing activities | $(69,511) | $121,674 | | Net cash provided by (used in) financing activities | $57,438 | $(102,057) | | Net increase (decrease) in cash and cash equivalents | $63,570 | $115,533 | | Cash and cash equivalents, end of period | $600,161 | $446,211 | [Notes to Consolidated Financial Statements – Unaudited](index=11&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements%20%E2%80%93%20Unaudited) Provides detailed explanations and additional information supporting the consolidated financial statements, clarifying accounting policies and specific items [Note 1 – Summary of Significant Accounting Policies](index=11&type=section&id=Note%201%20%E2%80%93%20Summary%20of%20Significant%20Accounting%20Policies) Outlines the Company's operations, financial statement basis, estimates, consolidation, stock repurchase, new accounting guidance, and policies for investments, loans, and credit losses - **First Financial Bankshares, Inc. operates as a financial holding company with one bank and 79 Texas locations, offering loans and banking services, alongside trust and asset management subsidiaries**[25](index=25&type=chunk) - **The Board authorized repurchasing up to 5 million common shares through July 31, 2024, with 101,337 shares repurchased in September 2023 at an average of $26.99 per share**[30](index=30&type=chunk) - **Recent accounting standards (ASU 2020-04, 2021-01, 2022-02, 2022-06, 2023-02, 2023-09) are not expected to significantly impact the Company's financial statements**[31](index=31&type=chunk)[33](index=33&type=chunk)[34](index=34&type=chunk)[35](index=35&type=chunk)[36](index=36&type=chunk) - **No allowance for credit losses was recorded on available-for-sale or held-to-maturity securities at March 31, 2024, March 31, 2023, or December 31, 2023**[46](index=46&type=chunk)[48](index=48&type=chunk) - **The reserve for unfunded commitments totaled $7.46 million at March 31, 2024**[67](index=67&type=chunk) - **Unrealized net losses on available-for-sale securities, net of taxes, totaled $441.23 million at March 31, 2024**[74](index=74&type=chunk) - **Total unrecognized compensation cost for unvested share-based arrangements was $4.72 million at March 31, 2024, to be recognized over 1.44 years**[149](index=149&type=chunk) [Note 2 - Securities](index=21&type=section&id=Note%202%20-%20Securities) Details available-for-sale securities, including amortized cost, fair value, unrealized gains/losses by type and maturity, and information on pledged securities and sales **Available-for-Sale Securities (Dollars in thousands):** | Security Type | Amortized Cost Basis (Mar 31, 2024) | Gross Unrealized Holding Gains (Mar 31, 2024) | Gross Unrealized Holding Losses (Mar 31, 2024) | Estimated Fair Value (Mar 31, 2024) | | :----------------------------------- | :---------------------------------- | :------------------------------------ | :------------------------------------- | :---------------------------------- | | U.S. Treasury securities | $445,399 | $— | $(13,231) | $432,168 | | Obligations of states and political subdivisions | $1,592,523 | $570 | $(139,058) | $1,454,035 | | Residential mortgage-backed securities | $2,685,896 | $72 | $(386,691) | $2,299,277 | | Commercial mortgage-backed securities | $381,198 | $52 | $(12,344) | $368,906 | | Corporate bonds and other | $112,501 | $— | $(8,361) | $104,140 | | **Total securities available-for-sale** | **$5,217,517** | **$694** | **$(559,685)** | **$4,658,526** | - **Unrealized losses on investment securities are attributed to interest rate changes, not credit-related events**[82](index=82&type=chunk) - **Securities totaling approximately $2.52 billion were pledged as collateral at March 31, 2024**[83](index=83&type=chunk) - **No available-for-sale investment securities were sold in Q1 2024; Q1 2023 sales totaled $145.95 million with $12,000 net realized gains**[84](index=84&type=chunk) [Note 3 – Loans Held-for-Investment and Allowance for Credit Losses](index=25&type=section&id=Note%203%20%E2%80%93%20Loans%20Held-for-Investment%20and%20Allowance%20for%20Credit%20Losses) Details the loan portfolio by segment, nonaccrual/past due loans, and allowance for credit losses (ACL), including activity, evaluation methods, risk ratings, and aging **Loans Held-for-Investment by Portfolio Segment (Dollars in thousands):** | Portfolio Segment | March 31, 2024 | December 31, 2023 | March 31, 2023 | | :--------------------------------- | :------------- | :---------------- | :------------- | | Commercial | $1,402,529 | $1,379,661 | $1,176,065 | | Agricultural | $87,882 | $84,890 | $77,017 | | Real Estate | $5,037,914 | $5,007,955 | $4,637,872 | | Consumer | $701,085 | $676,285 | $685,261 | | **Total Loans** | **$7,229,410** | **$7,148,791** | **$6,576,215** | | Less: Allowance for credit losses | $(89,562) | $(88,734) | $(80,818) | | **Loans, net** | **$7,139,848** | **$7,060,057** | **$6,495,397** | **Nonaccrual and Past Due Loans (Dollars in thousands):** | Item | March 31, 2024 | December 31, 2023 | March 31, 2023 | | :--------------------------------------- | :------------- | :---------------- | :------------- | | Nonaccrual loans | $36,157 | $33,609 | $24,171 | | Loans still accruing and past due 90 days or more | $33 | $1,004 | $22 | | **Total nonperforming loans** | **$36,190** | **$34,613** | **$24,193** | - **The Q1 2024 provision for credit losses was $808,000, comprising a $1.26 million loan loss provision and a $448,000 reversal for unfunded commitments**[92](index=92&type=chunk) **Allowance for Credit Losses by Evaluation Method (Dollars in thousands):** | Item | March 31, 2024 | March 31, 2023 | | :--------------------------------------- | :------------- | :------------- | | Loans individually evaluated for credit losses | $19,077 | $16,845 | | Loans collectively evaluated for credit losses | $70,485 | $63,973 | | **Total** | **$89,562** | **$80,818** | - **Loan modifications for financially distressed borrowers were insignificant in Q1 2024 and Q1 2023**[117](index=117&type=chunk) [Note 4 - Loans Held-for-Sale](index=31&type=section&id=Note%204%20-%20Loans%20Held-for-Sale) Details loans held-for-sale, primarily secondary market mortgage loans, valued using a market approach with most classified as Level 2 in the fair value hierarchy - **Loans held-for-sale totaled $16.11 million at March 31, 2024**[119](index=119&type=chunk) - **These loans are valued using a market approach, primarily with Level 2 inputs in the fair value hierarchy**[120](index=120&type=chunk) [Note 5 - Derivative Financial Instruments](index=31&type=section&id=Note%205%20-%20Derivative%20Financial%20Instruments) Describes the Company's use of IRLCs and forward mortgage-backed securities contracts to manage interest rate risk from mortgage originations, carried at fair value **Outstanding Derivative Positions (Dollars in thousands):** | Item | Outstanding Notional Balance (Mar 31, 2024) | Asset Derivative Fair Value (Mar 31, 2024) | Liability Derivative Fair Value (Mar 31, 2024) | | :--------------------------------------- | :------------------------------------ | :--------------------------------- | :----------------------------------- | | IRLCs | $53,206 | $803 | $— | | Forward mortgage-backed securities trades | $70,000 | $— | $91 | | **Total** | **$123,206** | **$803** | **$91** | - **IRLCs are classified as Level 3 in fair value disclosures, while forward mortgage-backed securities contracts are Level 2**[124](index=124&type=chunk)[125](index=125&type=chunk) [Note 6 – Borrowings](index=33&type=section&id=Note%206%20%E2%80%93%20Borrowings) Details the Company's borrowings, including repurchase agreements, federal funds, other borrowings, and a revolving line of credit with Frost Bank **Borrowings (Dollars in thousands):** | Item | March 31, 2024 | December 31, 2023 | March 31, 2023 | | :--------------------------------------- | :------------- | :---------------- | :------------- | | Securities sold under agreements with customers to repurchase | $307,297 | $381,928 | $608,299 | | Federal funds purchased | $5,750 | $1,100 | $3,575 | | Other borrowings | $21,053 | $21,053 | $21,053 | | **Total** | **$334,100** | **$404,081** | **$632,927** | - **The Company has a $25 million revolving line of credit with Frost Bank, with no outstanding balance at March 31, 2024**[129](index=129&type=chunk) [Note 7 - Income Taxes](index=33&type=section&id=Note%207%20-%20Income%20Taxes) Provides income tax expense and effective tax rate, explaining deviations from the statutory rate due to tax-exempt income and credit programs, including LIHTC and NMTC investments **Income Tax Information (Dollars in thousands, except percentages):** | Item | Three-Months Ended March 31, 2024 | Three-Months Ended March 31, 2023 | | :--------------------------------------- | :-------------------------------- | :-------------------------------- | | Income tax expense | $11,480 | $11,688 | | Effective tax rate on pretax income | 17.70% | 18.19% | - **Effective tax rates differ from the 21% federal rate due to tax-exempt interest, ESOP dividend deductibility, deferred compensation benefits, and NMTC benefits**[131](index=131&type=chunk) - **CDE investments in other assets totaled $25.41 million at March 31, 2024, related to the federal New Market Tax Credits program**[133](index=133&type=chunk) [Note 8 - Stock Based Compensation](index=34&type=section&id=Note%208%20-%20Stock%20Based%20Compensation) Details the Company's stock-based compensation plans, including restricted stock units, performance units, restricted awards, and stock options, summarizing activity and unrecognized costs - **As of March 31, 2024, 1,617,290 common shares remained available for issuance under the 2021 Omnibus Stock and Incentive Plan**[135](index=135&type=chunk) - **Total unrecognized compensation cost for unvested share-based arrangements was $4.72 million at March 31, 2024, to be recognized over 1.44 years**[149](index=149&type=chunk) **Stock Option Activity (Three-Months Ended March 31, 2024):** | Item | Shares | Weighted Average Exercise Price | | :--------------------------------------- | :------- | :------------------------------ | | Outstanding, December 31, 2023 | 1,552,249 | $30.45 | | Exercised | (82,614) | $20.77 | | Cancelled | (21,692) | $36.49 | | **Outstanding, March 31, 2024** | **1,447,943** | **$30.91** | | Exercisable, March 31, 2024 | 813,657 | $25.85 | [Note 9 - Fair Value Disclosures](index=36&type=section&id=Note%209%20-%20Fair%20Value%20Disclosures) Defines fair value and its hierarchy (Level 1, 2, 3 inputs), summarizing recurring fair value measurements for securities, loans held-for-sale, and derivatives, and non-recurring measurements for non-financial assets - **The fair value hierarchy categorizes inputs into Level 1 (quoted prices), Level 2 (observable inputs), and Level 3 (unobservable inputs)**[155](index=155&type=chunk) **Fair Value Measurements (Dollars in thousands) at March 31, 2024:** | Item | Level 1 Inputs | Level 2 Inputs | Level 3 Inputs | Total Fair Value | | :--------------------------------------- | :------------- | :------------- | :------------- | :------------- | | Available-for-sale investment securities | $436,591 | $4,221,935 | $— | $4,658,526 | | Loans held-for-sale | $— | $15,080 | $— | $15,080 | | IRLCs | $— | $— | $803 | $803 | | Forward mortgage-backed securities trades | $— | $(91) | $— | $(91) | - **No transfers between Level 2 and Level 3 occurred during Q1 2024 and Q1 2023**[155](index=155&type=chunk) [Note 10 - Subsequent Events](index=39&type=section&id=Note%2010%20-%20Subsequent%20Events) Discloses a significant post-reporting event: the conversion of First Financial Bank, N.A. and First Financial Trust and Asset Management Company, N.A. to Texas state charters - **Effective April 22, 2024, First Financial Bank, N.A. and First Financial Trust and Asset Management Company, N.A. converted to Texas state charters**[170](index=170&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=40&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Provides management's perspective on financial condition and operations, including forward-looking statements, critical accounting policies, recent developments, and analysis of income, expenses, balance sheet, risk, capital, and liquidity [Forward-Looking Statements](index=40&type=section&id=Forward-Looking%20Statements) Highlights that the report contains forward-looking statements subject to various risks and uncertainties, with no obligation for public updates - **The report contains forward-looking statements subject to risks including economic conditions, interest rates, regulatory changes, competition, and geopolitical events**[172](index=172&type=chunk)[173](index=173&type=chunk)[174](index=174&type=chunk) - **The Company undertakes no obligation to publicly update or revise any forward-looking statements**[175](index=175&type=chunk) [Introduction](index=41&type=section&id=Introduction) Introduces the primary revenue sources and key performance metrics used to evaluate the Company's financial health and operational efficiency - **Primary revenue sources include interest on loans and investments, trust fees, mortgage loan sales gains, and deposit service charges**[176](index=176&type=chunk) - **Performance is measured by return on average assets, return on average equity, regulatory capital ratios, net interest margin, and efficiency ratio**[176](index=176&type=chunk) [Critical Accounting Policies](index=41&type=section&id=Critical%20Accounting%20Policies) Identifies the most critical accounting policies, emphasizing those requiring significant management estimates and assumptions for financial reporting - **Critical accounting policies include the allowance for credit losses and financial instrument valuation, both requiring significant estimates and assumptions**[180](index=180&type=chunk) [Stock Repurchase](index=41&type=section&id=Stock%20Repurchase) Details the Board's authorization for common share repurchases and summarizes recent repurchase activity, including shares bought back and average price - **The Board renewed authorization to repurchase up to 5 million common shares through July 31, 2024**[181](index=181&type=chunk) - **101,337 shares were repurchased and retired in September 2023 at an average price of $26.99 per share**[181](index=181&type=chunk) [Recent Developments](index=42&type=section&id=Recent%20Developments) Highlights significant events occurring shortly after the reporting period, specifically the conversion of key entities to Texas state charters - **Effective April 22, 2024, First Financial Bank, N.A. and First Financial Trust and Asset Management Company, N.A. converted to Texas state banking charters**[182](index=182&type=chunk) [Results of Operations](index=42&type=section&id=Results%20of%20Operations) Analyzes the Company's financial performance, detailing key income and expense components, and providing insights into profitability drivers [Performance Summary](index=42&type=section&id=Performance%20Summary) Summarizes key financial performance metrics, including net earnings, diluted earnings per share, return on average assets, and return on average equity **Performance Summary (Dollars in millions, except per share amounts):** | Metric | Q1 2024 | Q1 2023 | | :----------------------- | :------ | :------ | | Net earnings | $53.40 | $52.57 | | Diluted earnings per share | $0.37 | $0.37 | | Return on average assets | 1.62% | 1.65% | | Return on average equity | 14.43% | 16.32% | [Net Interest Income](index=42&type=section&id=Net%20Interest%20Income) Analyzes changes in tax-equivalent net interest income and net interest margin, identifying drivers such as loan growth and interest rate fluctuations - **Tax-equivalent net interest income increased to $102.82 million in Q1 2024 from $99.42 million in Q1 2023**[186](index=186&type=chunk) - **The increase was primarily driven by a $705.09 million rise in average loans, partially offset by lower investment securities and higher deposit/borrowing rates**[186](index=186&type=chunk) - **The tax-equivalent net interest margin remained stable at 3.34% for both Q1 2024 and Q1 2023**[189](index=189&type=chunk)[193](index=193&type=chunk) [Noninterest Income](index=44&type=section&id=Noninterest%20Income) Examines the components of noninterest income, including trust fees, service charges, debit card fees, and mortgage loan gains, and their respective changes **Noninterest Income (Dollars in thousands):** | Item | Q1 2024 | Q1 2023 | Change | | :--------------------------------- | :------ | :------ | :----- | | Trust fees | $11,379 | $9,845 | $1,534 | | Service charges on deposit accounts | $6,246 | $6,036 | $210 | | Debit card fees | $4,891 | $4,936 | $(45) | | Gain on sale and fees on mortgage loans | $3,128 | $2,974 | $154 | | **Total Noninterest Income** | **$29,383** | **$28,007** | **$1,376** | - **Trust fees increased as the market value of trust assets managed rose to $10.15 billion at March 31, 2024, from $9.10 billion a year prior**[196](index=196&type=chunk) - **Service charges on deposit accounts increased due to the opening of over 2,000 net new accounts in Q1 2024**[196](index=196&type=chunk) [Noninterest Expense](index=44&type=section&id=Noninterest%20Expense) Analyzes the various categories of noninterest expense, such as salaries, occupancy, and FDIC premiums, and their impact on the efficiency ratio **Noninterest Expense (Dollars in thousands):** | Item | Q1 2024 | Q1 2023 | Change | | :--------------------------------- | :------ | :------ | :----- | | Salaries, commissions and employee benefits | $36,683 | $31,461 | $5,222 | | Net occupancy expense | $3,470 | $3,430 | $40 | | FDIC insurance premiums | $1,965 | $1,654 | $311 | | Software amortization and expense | $3,005 | $2,311 | $694 | | **Total Noninterest Expense** | **$63,940** | **$57,256** | **$6,684** | - **The efficiency ratio was 48.37% for Q1 2024, up from 44.93% in Q1 2023, indicating decreased efficiency**[198](index=198&type=chunk) - **Salaries, commissions, and employee benefits increased primarily due to merit/market pay raises, higher profit sharing ($1.65 million), medical insurance ($1.29 million), and officer incentive accruals ($1.18 million)**[199](index=199&type=chunk) - **An additional $440,000 was accrued in Q1 2024 for the FDIC special assessment**[200](index=200&type=chunk) [Balance Sheet Review](index=45&type=section&id=Balance%20Sheet%20Review) Reviews key balance sheet components, including loans, asset quality, allowance for credit losses, securities, deposits, and borrowings, highlighting significant changes [Loans](index=45&type=section&id=Loans) Examines the total loans held-for-investment and the proportion of variable interest rate loans within the portfolio at the reporting date - **Total loans held-for-investment reached $7.23 billion at March 31, 2024, an increase of $80.62 million from December 31, 2023**[202](index=202&type=chunk) - **Variable interest rate loans comprised 57.98% of total loans held-for-investment at March 31, 2024**[209](index=209&type=chunk) [Asset Quality](index=47&type=section&id=Asset%20Quality) Assesses the quality of the Company's assets by detailing nonperforming loans, foreclosed assets, and their ratios to total assets and loans **Nonperforming Assets (Dollars in thousands, except percentages):** | Item | March 31, 2024 | December 31, 2023 | March 31, 2023 | | :--------------------------------------- | :------------- | :---------------- | :------------- | | Total nonperforming loans | $36,190 | $34,613 | $24,193 | | Foreclosed assets | $1,014 | $483 | $196 | | **Total nonperforming assets** | **$37,204** | **$35,096** | **$24,389** | | As a % of loans held-for-investment and foreclosed assets | 0.51% | 0.49% | 0.37% | | As a % of total assets | 0.28% | 0.27% | 0.19% | [Allowance for Credit Losses](index=48&type=section&id=Allowance%20for%20Credit%20Losses) Provides an overview of the allowance for credit losses, including period-end balances, loan loss experience, and coverage ratios **Loan Loss Experience and Allowance for Credit Losses (Dollars in thousands, except percentages):** | Item | Q1 2024 | Q1 2023 | | :--------------------------------------- | :------ | :------ | | Allowance for credit losses at period-end | $89,562 | $80,818 | | Loans held-for-investment at period-end | $7,229,410 | $6,576,215 | | Net charge-offs (recoveries)/average loans (annualized) | 0.02% | (0.02)% | | Allowance for loan losses/period-end loans held-for-investment | 1.24% | 1.23% | [Interest-Bearing Demand Deposits in Banks](index=48&type=section&id=Interest-Bearing%20Demand%20Deposits%20in%20Banks) Reports the total amount of interest-bearing demand deposits held in banks, highlighting changes over the reporting periods - **Interest-bearing deposits in banks increased to $365.40 million at March 31, 2024, from $221.34 million at March 31, 2023**[216](index=216&type=chunk) [Available-for-Sale Securities](index=48&type=section&id=Available-for-Sale%20Securities) Discusses the fair value of available-for-sale securities, changes in the portfolio, and its overall yield and modified duration - **Fair value of available-for-sale securities was $4.66 billion at March 31, 2024, a $74.24 million decrease from December 31, 2023**[217](index=217&type=chunk) - **The investment portfolio had a tax equivalent yield of 2.33% and a modified duration of 5.93 years at March 31, 2024**[221](index=221&type=chunk) [Deposits](index=49&type=section&id=Deposits) Reports total deposits, changes in their cost, and the estimated amount of uninsured and uncollateralized deposits at the reporting date - **Total deposits were $11.29 billion at March 31, 2024, an increase from $10.94 billion at March 31, 2023**[221](index=221&type=chunk) - **The total cost of deposits increased to 1.62% for Q1 2024 from 0.81% for Q1 2023**[223](index=223&type=chunk) - **Estimated uninsured and uncollateralized deposits were approximately $5.28 billion at March 31, 2024**[223](index=223&type=chunk) [Borrowings](index=49&type=section&id=Borrowings) Details total borrowings and the weighted average interest rate paid, highlighting changes over the reporting periods - **Total borrowings were $334.10 million at March 31, 2024, a decrease from $632.93 million at March 31, 2023**[224](index=224&type=chunk) - **The weighted average interest rate on borrowings increased to 4.36% for Q1 2024 from 3.10% for Q1 2023**[224](index=224&type=chunk) [Interest Rate Risk](index=49&type=section&id=Interest%20Rate%20Risk) Assesses the Company's exposure to interest rate fluctuations, including the impact on net interest income and unrealized losses on securities - **The Company's earnings simulation model indicates an asset-sensitive position, projecting an 8.69% increase in net interest income for an immediate +400 basis point rate change at March 31, 2024**[230](index=230&type=chunk) - **Unrealized pre-tax losses on the available-for-sale portfolio increased to $558.99 million at March 31, 2024, from $510.92 million at December 31, 2023, primarily due to rising interest rates**[232](index=232&type=chunk) [Capital and Liquidity](index=50&type=section&id=Capital%20and%20Liquidity) Evaluates the Company's capital adequacy and liquidity position, including regulatory ratios, funding sources, and off-balance sheet commitments [Capital](index=50&type=section&id=Capital) Details total shareholders' equity and regulatory capital ratios, emphasizing compliance with Basel III requirements and well-capitalized thresholds - **Total shareholders' equity was $1.49 billion, representing 11.31% of total assets, at March 31, 2024**[234](index=234&type=chunk) **Regulatory Capital Ratios (Consolidated) at March 31, 2024:** | Ratio | Actual Ratio | Minimum Capital Required-Basel III | Required to be Considered Well Capitalized | | :--------------------------------------- | :----------- | :--------------------------------- | :----------------------------------------- | | Total Capital to Risk-Weighted Assets | 19.70% | 10.50% | 10.00% | | Tier 1 Capital to Risk-Weighted Assets | 18.60% | 8.50% | 6.00% | | Common Equity Tier 1 Capital to Risk-Weighted Assets | 18.60% | 7.00% | N/A | | Leverage Ratio | 12.12% | 4.00% | N/A | - **Unrealized losses on available-for-sale investment securities are excluded from all regulatory capital ratio calculations**[234](index=234&type=chunk)[241](index=241&type=chunk) [Liquidity](index=52&type=section&id=Liquidity) Describes the Company's liquidity sources, including cash, marketable assets, deposits, and available credit lines, and assesses its adequacy - **Liquidity is provided by cash, marketable assets, core depositors, correspondent banks, and funding sources like FHLB ($1.98 billion available credit at March 31, 2024) and the Federal Reserve Bank of Dallas**[242](index=242&type=chunk) - **The Company's liquidity is adequate for short-term and long-term needs, supported by a diversified core deposit base and low loan-to-deposit ratios**[245](index=245&type=chunk) [Off-Balance Sheet ("OBS")/Reserve for Unfunded Commitments](index=52&type=section&id=Off-Balance%20Sheet%20%28%22OBS%22%29%2FReserve%20for%20Unfunded%20Commitments) Details the Company's off-balance sheet commercial commitments, including unfunded lines of credit and standby letters of credit, and the associated reserve **Commercial Commitments (Dollars in thousands) at March 31, 2024:** | Item | Total Notional Amounts Committed | | :--------------------------------------- | :------------------------------- | | Unfunded lines of credit | $1,215,592 | | Unfunded commitments to extend credit | $826,437 | | Standby letters of credit | $55,117 | | **Total commercial commitments** | **$2,097,146** | - **The Company's reserve for unfunded commitments totaled $7.46 million at March 31, 2024**[246](index=246&type=chunk) [Parent Company Funding](index=52&type=section&id=Parent%20Company%20Funding) Reports the amount available for intercompany dividends from subsidiaries and summarizes dividend payments made by subsidiaries - **$290.26 million was available for intercompany dividends from subsidiaries without prior regulatory approval at March 31, 2024**[252](index=252&type=chunk) - **Subsidiaries paid aggregate dividends of $12.00 million in Q1 2024, compared to $2.50 million for the same period in 2023**[252](index=252&type=chunk) [Dividends](index=52&type=section&id=Dividends) Outlines the Company's long-term dividend policy, loan covenant restrictions, and the cash dividend payout ratio for the current period - **The long-term dividend policy targets cash dividends of approximately 35% to 40% of annual net earnings**[253](index=253&type=chunk) - **A loan covenant with Frost Bank restricts dividends to no more than 55% of consolidated net income**[253](index=253&type=chunk) - **The cash dividend payout ratio was 48.23% of net earnings for the first three months of 2024**[253](index=253&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=53&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) Identifies interest rate risk as a significant market risk for the Company, with detailed disclosures provided in the Management's Discussion and Analysis - **Management identifies interest rate risk as a significant market risk for the Company**[256](index=256&type=chunk) [Item 4. Controls and Procedures](index=54&type=section&id=Item%204.%20Controls%20and%20Procedures) Management evaluated disclosure controls and procedures as effective at a reasonable assurance level as of March 31, 2024, with no significant internal control changes - **Disclosure controls and procedures were evaluated and deemed effective at the reasonable assurance level as of March 31, 2024**[258](index=258&type=chunk)[259](index=259&type=chunk) - **No significant changes in internal controls over financial reporting occurred subsequent to the evaluation**[260](index=260&type=chunk) PART II - OTHER INFORMATION [Item 1. Legal Proceedings](index=55&type=section&id=Item%201.%20Legal%20Proceedings) The Company and its subsidiaries are involved in ordinary course lawsuits, but no material legal proceedings are pending as of the reporting date - **No material pending legal proceedings against the Company or its subsidiaries**[263](index=263&type=chunk) [Item 1A. Risk Factors](index=55&type=section&id=Item%201A.%20Risk%20Factors) No material changes to risk factors have occurred since the Company's Annual Report on Form 10-K for the year ended December 31, 2023 - **No material changes in risk factors since the December 31, 2023, Form 10-K**[264](index=264&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=55&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) This item is not applicable to the current report [Item 3. Defaults Upon Senior Securities](index=55&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) This item is not applicable to the current report [Item 4. Mine Safety Disclosures](index=55&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the current report [Item 5. Other Information](index=55&type=section&id=Item%205.%20Other%20Information) This item is not applicable to the current report [Item 6. Exhibits](index=56&type=section&id=Item%206.%20Exhibits) Lists all exhibits filed with the Form 10-Q, including organizational documents, stock plans, loan agreements, and certifications - **Exhibits include Amended and Restated Certificate of Formation, Bylaws, Stock and Incentive Plans, Promissory Note and Loan Agreement with Frost Bank, and various certifications**[267](index=267&type=chunk) [Signatures](index=57&type=section&id=Signatures) The report is signed by F. Scott Dueser (Chairman, President, CEO) and Michelle S. Hickox (EVP, CFO, Secretary, Treasurer) on May 3, 2024 - **Report signed by F. Scott Dueser (Chairman, President, CEO) and Michelle S. Hickox (EVP, CFO, Secretary, Treasurer) on May 3, 2024**[271](index=271&type=chunk)

ABILENE, Texas, April 23, 2024 /PRNewswire/ -- First Financial Bankshares, Inc. (NASDAQ: FFIN) – today announced at it's 2024 Annual Shareholders' Meeting that its subsidiaries, First Financial Bank, N.A. (the "Bank") and First Financial Trust and Asset Management Company, N.A. (the "Trust Company"), have each successfully converted their charters to a Texas state banking association and a Texas chartered trust company, respectively. The Bank has been a national bank since its inception in 1890 and the Trus ...

Getting big returns from financial portfolios, whether through stocks, bonds, ETFs, other securities, or a combination of all, is an investor's dream. However, when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments.Cash flow can come from bond interest, interest from other types of investments, and of course, dividends. A dividend is that coveted distribution of a company's earnings paid out to shareholders, and investors often view it by i ...

For the quarter ended March 2024, First Financial Bankshares (FFIN) reported revenue of $132.2 million, up 3.8% over the same period last year. EPS came in at $0.37, compared to $0.37 in the year-ago quarter.The reported revenue compares to the Zacks Consensus Estimate of $129.35 million, representing a surprise of +2.20%. The company delivered an EPS surprise of +5.71%, with the consensus EPS estimate being $0.35.While investors scrutinize revenue and earnings changes year-over-year and how they compare wi ...

First Financial Bankshares (FFIN) came out with quarterly earnings of $0.37 per share, beating the Zacks Consensus Estimate of $0.35 per share. This compares to earnings of $0.37 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 5.71%. A quarter ago, it was expected that this commercial banker operating mostly in Texas would post earnings of $0.34 per share when it actually produced earnings of $0.32, delivering a surprise of -5 ...

[First Quarter 2024 Earnings Release Highlights](index=1&type=section&id=First%20Quarter%202024%20Earnings%20Release%20Highlights) [Executive Summary](index=1&type=section&id=Executive%20Summary) First Financial Bankshares reported a slight increase in first-quarter 2024 earnings to $53.40 million, up from $52.57 million in the prior year, with basic and diluted earnings per share remaining flat at $0.37 | Metric | Q1 2024 (Millions) | Q1 2023 (Millions) | Change (Millions) | | :----------------------- | :------------------- | :------------------- | :------------------ | | Earnings | $53.40 | $52.57 | +$0.83 | | Basic EPS | $0.37 | $0.37 | $0.00 | | Diluted EPS | $0.37 | $0.37 | $0.00 | - Key factors contributing to the Q1 2024 results compared to Q1 2023 included: * Increase in net interest income: **$3.96 million** * Decrease in provision for credit losses: **$1.97 million** * Increase in trust fees: **$1.53 million** * Offset by an increase in salary and employee benefits expenses: **$5.22 million**[3](index=3&type=chunk) [CEO Commentary](index=1&type=section&id=CEO%20Commentary) F. Scott Dueser, Chairman, President, and CEO, highlighted the increase in net interest income driven by organic loan and deposit growth, noting strategic use of bond portfolio maturities to fund growth and enhance liquidity - Net interest income increase was achieved through organic loan and deposit growth during the quarter[4](index=4&type=chunk) - Cash flow from maturing bond portfolio is being used to fund organic loan growth, bolster liquidity, and repurchase securities at higher rates[4](index=4&type=chunk) - The company maintains strong regulatory capital ratios, a diversified deposit base, and access to multiple liquidity sources, reflecting financial safety and security[4](index=4&type=chunk) [Detailed Financial Performance](index=1&type=section&id=Detailed%20Financial%20Performance) [Net Interest Income and Margin](index=1&type=section&id=Net%20Interest%20Income%20and%20Margin) Net interest income for Q1 2024 increased year-over-year and quarter-over-quarter, reaching $100.24 million, with the net interest margin remaining stable at 3.34% as average interest-earning assets grew to $12.37 billion | Metric | Q1 2024 (Millions) | Q4 2023 (Millions) | Q1 2023 (Millions) | | :-------------------------- | :------------------- | :------------------- | :------------------- | | Net Interest Income | $100.24 | $97.51 | $96.29 | | Net Interest Margin (tax equivalent) | 3.34% | 3.33% | 3.34% | | Average Interest-Earning Assets | $12.37 billion | - | $12.07 billion | [Credit Quality](index=1&type=section&id=Credit%20Quality) The provision for credit losses significantly decreased in Q1 2024 compared to the prior year, while the allowance for credit losses increased, net charge-offs were recorded, and nonperforming assets and classified loans saw an increase | Metric | Q1 2024 (Thousands) | Q1 2023 (Thousands) | Change (Thousands) | | :-------------------------- | :-------------------- | :-------------------- | :------------------- | | Provision for Credit Losses | $808 | $2,780 | -$1,972 | | Net Charge-offs (Recoveries) | $428 (charge-offs) | $277 (recoveries) | -$705 | | Metric | March 31, 2024 (Millions) | March 31, 2023 (Millions) | Change (Millions) | | :-------------------------------- | :-------------------------- | :-------------------------- | :------------------ | | Allowance for Credit Losses | $89.56 | $80.82 | +$8.74 | | Allowance for Credit Losses (% of loans) | 1.24% | 1.23% | +0.01% | | Reserve for Unfunded Commitments | $7.46 | $10.40 | -$2.94 | | Nonperforming Assets (% of loans & foreclosed assets) | 0.51% | 0.37% | +0.14% | | Classified Loans | $201.59 | $157.06 | +$44.53 | [Noninterest Income](index=1&type=section&id=Noninterest%20Income) Total noninterest income increased in Q1 2024, primarily driven by higher trust fees, service charges on deposits, and mortgage income, despite no gains on sales of assets, foreclosed assets, and securities | Metric | Q1 2024 (Millions) | Q1 2023 (Millions) | Change (Millions) | | :-------------------------------- | :------------------- | :------------------- | :------------------ | | Total Noninterest Income | $29.38 | $28.01 | +$1.37 | | Trust Fees | $11.38 | $9.85 | +$1.53 | | Service Charges on Deposits | $6.25 | $6.04 | +$0.21 | | Mortgage Income | $3.13 | $2.97 | +$0.16 | | Gains on Sales of Assets, Foreclosed Assets & Securities | $0.00 | $0.976 | -$0.976 | - Increase in trust fees was driven by an increase in the market value of trust assets managed to **$10.15 billion** at March 31, 2024, from **$9.10 billion** at March 31, 2023[8](index=8&type=chunk) - Service charges on deposits increased due to the growth of over **2,000 net new accounts** opened during Q1 2024[12](index=12&type=chunk) [Noninterest Expense and Efficiency](index=2&type=section&id=Noninterest%20Expense%20and%20Efficiency) Noninterest expense increased significantly in Q1 2024, primarily due to higher salary and employee benefits, profit sharing accruals, medical insurance, and officer incentive accruals, leading to an increase in the efficiency ratio | Metric | Q1 2024 (Millions) | Q1 2023 (Millions) | Change (Millions) | | :-------------------------- | :------------------- | :------------------- | :------------------ | | Total Noninterest Expense | $63.94 | $57.26 | +$6.68 | | Efficiency Ratio | 48.37% | 44.93% | +3.44% | - Salary, commissions, and employee benefit costs increased to **$36.68 million** (Q1 2024) from **$31.46 million** (Q1 2023), primarily due to merit-based and market-driven pay increases, a **$1.65 million** increase in profit sharing accruals, a **$1.29 million** increase in medical insurance expense, and a **$1.18 million** increase in officer incentive accruals[12](index=12&type=chunk) - Other noninterest expenses (excluding salary-related costs) increased by **$1.46 million**, largely due to increases in software amortization and FDIC insurance fees, including an additional **$440 thousand** for the FDIC special assessment[12](index=12&type=chunk) [Balance Sheet and Capital Position](index=2&type=section&id=Balance%20Sheet%20and%20Capital%20Position) [Key Balance Sheet Items](index=2&type=section&id=Key%20Balance%20Sheet%20Items) Consolidated total assets grew to $13.19 billion as of March 31, 2024, with loans increasing significantly year-over-year and showing annualized growth during the quarter, alongside an increase in deposits | Metric | March 31, 2024 (Billions) | March 31, 2023 (Billions) | Change (Billions) | | :---------------- | :-------------------------- | :-------------------------- | :------------------ | | Total Assets | $13.19 | $13.01 | +$0.18 | | Loans | $7.23 | $6.58 | +$0.65 | | Deposits | $11.29 | $10.94 | +$0.35 | - Loans grew by **$80.62 million**, or **4.51% annualized**, during the first quarter of 2024 compared to December 31, 2023[10](index=10&type=chunk) [Shareholders' Equity](index=2&type=section&id=Shareholders%27%20Equity) Shareholders' equity remained relatively stable quarter-over-quarter but increased year-over-year, while the unrealized loss on the securities portfolio, net of tax, increased slightly from the previous quarter | Metric | March 31, 2024 (Billions) | Dec 31, 2023 (Billions) | March 31, 2023 (Billions) | | :-------------------------------- | :-------------------------- | :------------------------ | :-------------------------- | | Shareholders' Equity | $1.49 | $1.50 | $1.37 | | Unrealized Loss on Securities (net of tax) | $441.23 million | $403.30 million | $458.25 million | [Company Information & Disclosures](index=3&type=section&id=Company%20Information%20%26%20Disclosures) [About First Financial Bankshares, Inc.](index=3&type=section&id=About%20First%20Financial%20Bankshares%2C%20Inc.) First Financial Bankshares, Inc. is a financial holding company headquartered in Abilene, Texas, operating through its subsidiary, First Financial Bank, N.A., with 79 locations across Texas, and also includes First Financial Trust & Asset Management Company, N.A., and First Technology Services, Inc - First Financial Bankshares, Inc. is a financial holding company operating through First Financial Bank, N.A., with **79 locations** in Texas[13](index=13&type=chunk) - The company also operates First Financial Trust & Asset Management Company, N.A. (nine locations) and First Technology Services, Inc[13](index=13&type=chunk) - The company's stock is listed on The Nasdaq Global Select Market under the trading symbol **FFIN**[14](index=14&type=chunk) [Forward-Looking Statements](index=3&type=section&id=Forward-Looking%20Statements) This section serves as a disclaimer, indicating that certain statements in the report are forward-looking and subject to risks and uncertainties, with actual results potentially differing materially due to various factors - Statements identified by words such as 'expect,' 'plan,' 'anticipate,' 'target,' 'forecast,' 'project,' and 'goal' are considered forward-looking statements[16](index=16&type=chunk) - Actual results may differ materially due to risks and uncertainties, including competition, changes in monetary and fiscal policies, interest rate policies, economic impact of oil and gas prices, changes in loan demand, fluctuations in collateral value, inflation, and acquisitions[16](index=16&type=chunk) - The company does not undertake any obligation to update publicly or revise any forward-looking statements due to new information, future events, or otherwise[16](index=16&type=chunk) [Consolidated Financial Summary (Unaudited)](index=4&type=section&id=Consolidated%20Financial%20Summary%20(Unaudited)) [Consolidated Balance Sheets](index=4&type=section&id=Consolidated%20Balance%20Sheets) The consolidated balance sheet provides a snapshot of the company's assets, liabilities, and shareholders' equity across multiple quarters, showing growth in total assets and loans held-for-investment, alongside an increase in total deposits | Metric (in thousands) | Mar. 31, 2024 | Dec. 31, 2023 | Sept. 30, 2023 | June 30, 2023 | Mar. 31, 2023 | | :-------------------------------- | :------------ | :------------ | :------------- | :------------ | :------------ | | **ASSETS** | | | | | | | Total assets | $13,191,158 | $13,105,594 | $12,777,418 | $12,825,437 | $13,007,986 | | Loans, held-for-investment | $7,229,410 | $7,148,791 | $6,994,696 | $6,777,570 | $6,576,215 | | Investment securities | $4,658,526 | $4,732,762 | $4,652,537 | $5,066,262 | $5,298,557 | | **LIABILITIES AND SHAREHOLDERS' EQUITY** | | | | | | | Total deposits | $11,289,808 | $11,138,300 | $10,716,523 | $10,807,560 | $10,936,418 | | Shareholders' equity | $1,491,367 | $1,498,900 | $1,240,110 | $1,367,233 | $1,372,853 | [Consolidated Income Statements](index=4&type=section&id=Consolidated%20Income%20Statements) The consolidated income statement details the company's revenues and expenses, showing an increase in net interest income and total noninterest income, alongside a rise in noninterest expenses, resulting in a net income of $53.40 million for Q1 2024 | Metric (in thousands) | Mar. 31, 2024 | Dec. 31, 2023 | Sept. 30, 2023 | June 30, 2023 | Mar. 31, 2023 | | :-------------------------------- | :------------ | :------------ | :------------- | :------------ | :------------ | | 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 | $0 | $2,276 | $5,573 | $2,781 | | 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 | $53,397 | $45,982 | $49,556 | $50,873 | $52,568 | [Per Common Share Data](index=4&type=section&id=Per%20Common%20Share%20Data) Per common share data shows stable basic and diluted net income per share at $0.37 for Q1 2024 and Q1 2023, with cash dividends declared increasing slightly year-over-year, while book value and tangible book value saw minor fluctuations | Metric | Mar. 31, 2024 | Dec. 31, 2023 | Sept. 30, 2023 | June 30, 2023 | Mar. 31, 2023 | | :---------------------- | :------------ | :------------ | :------------- | :------------ | :------------ | | 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 | [Performance Ratios](index=4&type=section&id=Performance%20Ratios) Key performance ratios for Q1 2024 include a return on average assets of 1.62% and a return on average equity of 14.43%, with the net interest margin remaining at 3.34% and the efficiency ratio increasing to 48.37% | Metric | Mar. 31, 2024 | Dec. 31, 2023 | Sept. 30, 2023 | June 30, 2023 | Mar. 31, 2023 | | :-------------------------- | :------------ | :------------ | :------------- | :------------ | :------------ | | 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% | [Selected Financial Data (Unaudited)](index=6&type=section&id=Selected%20Financial%20Data%20(Unaudited)) [Allowance for Credit Losses Details](index=6&type=section&id=Allowance%20for%20Credit%20Losses%20Details) This section provides a detailed breakdown of the allowance for loan losses and unfunded commitments, including movements from charge-offs, recoveries, and provisions, along with key related ratios | Metric (in thousands) | Mar. 31, 2024 | Dec. 31, 2023 | Sept. 30, 2023 | June 30, 2023 | Mar. 31, 2023 | | :-------------------------------- | :------------ | :------------ | :------------- | :------------ | :------------ | | Balance at beginning of period (ALL) | $88,734 | $89,714 | $86,541 | $80,818 | $75,834 | | Net recoveries (charge-offs) | $(428) | $(980) | $(648) | $(799) | $277 | | Provision for loan losses | $1,256 | $0 | $3,821 | $6,522 | $4,707 | | Balance at end of period (ALL) | $89,562 | $88,734 | $89,714 | $86,541 | $80,818 | | Balance at end of period (AFUC) | $7,455 | $7,903 | $7,903 | $9,448 | $10,397 | | ALL / period-end loans held-for-investment | 1.24% | 1.24% | 1.28% | 1.28% | 1.23% | | ALL / 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)% | [Loan Portfolio Composition](index=6&type=section&id=Loan%20Portfolio%20Composition) The loan portfolio held-for-investment is categorized into Commercial, Agricultural, Real Estate, and Consumer loans, with Real Estate loans constituting the largest segment, including significant Residential and Owner Occupied CRE components | Loan Category (in thousands) | Mar. 31, 2024 | Dec. 31, 2023 | Sept. 30, 2023 | June 30, 2023 | Mar. 31, 2023 | | :-------------------------------- | :------------ | :------------ | :------------- | :------------ | :------------ | | 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 | | Total Real Estate | $5,037,914 | $5,007,955 | $4,891,348 | $4,772,402 | $4,637,872 | | - Residential | $1,918,573 | $1,834,593 | $1,788,913 | $1,698,679 | $1,628,841 | | - Owner Occupied CRE | $1,032,845 | $1,037,281 | $1,002,913 | $1,011,511 | $1,043,018 | | 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 | [Asset Quality Metrics](index=6&type=section&id=Asset%20Quality%20Metrics) This section details the summary of loan classifications and nonperforming assets, showing an increase in total classified loans and nonperforming assets as a percentage of loans and total assets | Metric (in thousands) | Mar. 31, 2024 | Dec. 31, 2023 | Sept. 30, 2023 | June 30, 2023 | Mar. 31, 2023 | | :-------------------------------- | :------------ | :------------ | :------------- | :------------ | :------------ | | Total classified loans | $201,587 | $176,213 | $179,105 | $175,139 | $157,056 | | 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% | [Capital Ratios](index=7&type=section&id=Capital%20Ratios) The company's capital ratios remain strong, with Common Equity Tier 1, Tier 1, and Total Capital ratios all above 18% as of March 31, 2024, indicating a robust capital position | Capital Ratio | Mar. 31, 2024 | Dec. 31, 2023 | Sept. 30, 2023 | June 30, 2023 | Mar. 31, 2023 | | :-------------------- | :------------ | :------------ | :------------- | :------------ | :------------ | | 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% | [Detailed Noninterest Income Breakdown](index=7&type=section&id=Detailed%20Noninterest%20Income%20Breakdown) This section provides a comprehensive breakdown of noninterest income sources, showing increases in trust fees, service charges on deposits, and mortgage loan gains, while gains on sales of securities and assets were absent in Q1 2024 | Noninterest Income (in thousands) | Mar. 31, 2024 | Dec. 31, 2023 | Sept. 30, 2023 | June 30, 2023 | Mar. 31, 2023 | | :-------------------------------- | :------------ | :------------ | :------------- | :------------ | :------------ | | 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 | $0 | $(6,205) | $(972) | $46 | $12 | | Net gain (loss) on sale of foreclosed assets | $0 | $23 | $(10) | $(1) | $34 | | Net gain (loss) on sale of assets | $0 | $(101) | $696 | $0 | $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 | [Detailed Noninterest Expense Breakdown](index=7&type=section&id=Detailed%20Noninterest%20Expense%20Breakdown) This section provides a detailed breakdown of noninterest expenses, highlighting increases in salaries, commissions, and employee benefits, profit sharing, and software amortization and expense, contributing to the overall rise in expenses | Noninterest Expense (in thousands) | Mar. 31, 2024 | Dec. 31, 2023 | Sept. 30, 2023 | June 30, 2023 | Mar. 31, 2023 | | :-------------------------------- | :------------ | :------------ | :------------- | :------------ | :------------ | | 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 | [Net Interest Income and Margin Analysis](index=9&type=section&id=Net%20Interest%20Income%20and%20Margin%20Analysis) This analysis provides a detailed breakdown of average balances, interest income/expense, and corresponding yields/rates for interest-earning assets and interest-bearing liabilities over several quarters, illustrating the components contributing to the net interest income and margin | Metric | Mar. 31, 2024 | Dec. 31, 2023 | Sept. 30, 2023 | June 30, 2023 | Mar. 31, 2023 | | :-------------------------------- | :------------ | :------------ | :------------- | :------------ | :------------ | | **Interest-earning assets:** | | | | | | | Average Balance (Total) | $12,365,145 | $11,927,332 | $11,959,628 | $12,047,485 | $12,069,171 | | Interest (Total) | $152,068 | $144,856 | $138,174 | $131,955 | $124,639 | | Yield / Rate (Total) | 4.95% | 4.82% | 4.58% | 4.39% | 4.19% | | **Interest-bearing liabilities:** | | | | | | | Average Balance (Total) | $8,328,496 | $8,007,918 | $7,880,440 | $7,752,748 | $7,705,655 | | Interest (Total) | $49,253 | $44,699 | $41,202 | $33,139 | $25,222 | | Yield / Rate (Total) | 2.38% | 2.21% | 2.07% | 1.71% | 1.33% | | Net interest income and margin (tax equivalent) | $102,815 (3.34%) | $100,157 (3.33%) | $96,972 (3.22%) | $98,816 (3.29%) | $99,417 (3.34%) |

ABILENE, Texas, April 16, 2024 /PRNewswire/ -- First Financial Bankshares, Inc. (NASDAQ: FFIN) will hold its 2024 Annual Shareholders' Meeting on April 23, 2024, at 10:30 a.m. Central time. The Company will be live streaming the meeting where F. Scott Dueser, Chairman, President and CEO; Michelle S. Hickox, EVP and CFO; David Bailey, EVP and Chief Banking Officer; and Kirk W. Thaxton, President and CEO of First Financial Trust & Asset Management Company, will recap 2023 and 1st quarter 2024 operational and ...

Getting big returns from financial portfolios, whether through stocks, bonds, ETFs, other securities, or a combination of all, is an investor's dream. But for income investors, generating consistent cash flow from each of your liquid investments is your primary focus.While cash flow can come from bond interest or interest from other types of investments, income investors hone in on dividends. A dividend is the distribution of a company's earnings paid out to shareholders; it's often viewed by its dividend y ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2023 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 0-07674 First Financial Bankshares, Inc. (Exact name of registrant as specified in its charter) (State or other jurisdiction of in ...