First Financial Bankshares(FFIN) - 2024 Q3 - Quarterly Results

Earnings and Net Income - Earnings for Q3 2024 were $55.31 million, up 5.37% from Q2 2024 and 11.61% from Q3 2023[1] - Net income for the quarter ended September 30, 2024, was $55,308 thousand, compared to $49,556 thousand in the same period last year[11] Net Interest Income and Margin - Net interest income for Q3 2024 was $107.11 million, up 3.72% from Q2 2024 and 13.76% from Q3 2023[2] - Net interest income for the quarter ended September 30, 2024, was $107,109 thousand, up from $94,149 thousand in the same period last year[11] - Net interest margin (tax equivalent) for the quarter ended September 30, 2024, was 3.50%, compared to 3.22% in the same period last year[11] - Net interest income and margin (tax equivalent) rose to $109,737 million and 3.50% respectively in 2024, up from $105,845 million and 3.48% in 2023[16] - Net interest income and margin (tax equivalent) for the three months ended March 31, 2024, were $102,815 million and 3.34%, respectively, compared to $100,157 million and 3.33% in the same period of 2023[18] - Net interest income and margin (tax equivalent) rose to $318,397 with a margin of 3.44% for the nine months ended Sept. 30, 2024, up from $295,204 and a margin of 3.28% in 2023[20] Interest-Earning Assets and Liabilities - Average interest-earning assets for Q3 2024 were $12.48 billion, up 4.35% from Q3 2023[2] - Total interest-earning assets grew to $12,476,599 million in 2024, with a yield of 5.18%, compared to $12,225,554 million and 5.14% yield in 2023[17] - Total interest-earning assets for the three months ended March 31, 2024, were $12,365,145 million, yielding 4.95%, up from $11,927,332 million and 4.82% in the same period of 2023[18] - Total interest-earning assets increased to $12,356,205 with a yield of 5.09% for the nine months ended Sept. 30, 2024, compared to $12,025,028 and a yield of 4.39% for the same period in 2023[20] - Total interest-bearing liabilities stood at $8,366,500 million in 2024, with a cost of 2.51%, compared to $8,255,769 million and 2.46% in 2023[17] - Total interest-bearing liabilities for the three months ended March 31, 2024, were $8,328,496 million, costing 2.38%, compared to $8,007,918 million and 2.21% in the same period of 2023[18] - Total interest-bearing liabilities increased to $8,317,101 with a cost of 2.45% for the nine months ended Sept. 30, 2024, up from $7,780,255 and a cost of 1.71% in 2023[20] Loans and Deposits - Loans totaled $7.72 billion at September 30, 2024, up 10.76% annualized from June 30, 2024[6] - Deposits and Repurchase Agreements totaled $11.81 billion at September 30, 2024, up 9.14% annualized from June 30, 2024[6] - Loans, held-for-investment increased to $7,723,191 thousand as of September 30, 2024, up from $6,994,696 thousand in the same period last year[11] - Total loans held-for-investment increased to $7,723,191 thousand as of Sept. 30, 2024, up from $7,519,733 thousand in June 2024 and $6,994,696 thousand in Sept. 2023[14] - Total deposits increased to $11,755,861 thousand as of September 30, 2024, up from $10,716,523 thousand in the same period last year[11] - Loans increased to $7,643,238 million in 2024, contributing $130,220 million in interest income at a yield of 6.78%, up from $7,405,297 million and $124,237 million in 2023[17] - Noninterest-bearing deposits decreased slightly to $3,279,486 million in 2024 from $3,289,906 million in 2023[17] - Deposits rose to $8,047,136 with a cost of 2.42% for the nine months ended Sept. 30, 2024, compared to $7,126,471 and a cost of 1.61% in 2023[20] - Noninterest-bearing deposits decreased to $3,305,289 for the nine months ended Sept. 30, 2024, from $3,690,190 in 2023[20] Credit Losses and Allowance - Provision for credit losses for Q3 2024 was $6.12 million, up 3.91% from Q2 2024 and 168.42% from Q3 2023[3] - Provision for credit losses for the quarter ended September 30, 2024, was $6,123 thousand, compared to $2,276 thousand in the same period last year[11] - Allowance for loan losses increased to $99,936 thousand as of September 30, 2024, up from $89,714 thousand in the same period last year[13] - Total classified loans increased to $229,923 thousand in Sept. 2024 from $219,263 thousand in June 2024 and $179,105 thousand in Sept. 2023[14] Noninterest Income and Expense - Noninterest income for Q3 2024 was $32.36 million, up 15.28% from Q3 2023[4] - Trust fee income increased by $1.64 million (16.36%) in Q3 2024 compared to Q3 2023, driven by growth in assets under management to $10.86 billion[4] - Total noninterest income for Sept. 2024 was $32,362 thousand, compared to $31,268 thousand in June 2024 and $28,070 thousand in Sept. 2023[15] - Total noninterest income increased to $93,012 million in 2024 from $86,025 million in 2023, reflecting growth in trust fees and other income streams[16] - Total noninterest expense for Sept. 2024 was $66,012 thousand, up from $65,012 thousand in June 2024 and $59,539 thousand in Sept. 2023[15] Efficiency Ratio - The Company's efficiency ratio improved to 46.45% in Q3 2024 from 47.62% in Q3 2023[6] - Efficiency ratio for the quarter ended September 30, 2024, was 46.45%, compared to 47.62% in the same period last year[11] Shareholders' Equity and Capital Ratios - Shareholders' equity was $1.66 billion as of September 30, 2024, up 9.21% from June 30, 2024 and 33.87% from September 30, 2023[7] - Common equity Tier 1 capital ratio improved to 18.83% in Sept. 2024, up from 18.42% in June 2024 and 18.35% in Sept. 2023[15] - Tangible common equity ratio improved to 10.16% in Sept. 2024, up from 9.38% in June 2024 and 7.42% in Sept. 2023[15] - Equity/Assets ratio increased to 12.24% in Sept. 2024, compared to 11.54% in June 2024 and 9.71% in Sept. 2023[15] - Shareholders' equity increased to $1,508,192 for the nine months ended Sept. 30, 2024, compared to $1,344,228 in 2023[20] Total Assets and Liabilities - Total assets increased to $13,582,932 thousand as of September 30, 2024, up from $12,777,418 thousand in the same period last year[11] - Total assets expanded to $13,294,356 million in 2024, up from $13,081,273 million in 2023[17] - Total assets reached $13,202,224 for the nine months ended Sept. 30, 2024, up from $12,877,141 in 2023[20] Real Estate and Consumer Loans - Total real estate loans grew to $5,354,404 thousand in Sept. 2024, up from $5,161,023 thousand in June 2024 and $4,891,348 thousand in Sept. 2023[14] - Total consumer loans increased to $776,012 thousand in Sept. 2024, compared to $771,410 thousand in June 2024 and $694,874 thousand in Sept. 2023[14] Nonperforming Assets - Nonperforming assets as a percentage of loans held-for-investment and foreclosed assets decreased to 0.83% in Sept. 2024 from 0.81% in June 2024 and 0.57% in Sept. 2023[14] Repurchase Agreements and Borrowings - Repurchase agreements declined to $209,907 with a cost of 3.31% for the nine months ended Sept. 30, 2024, compared to $571,445 and a cost of 2.69% in 2023[20] - Borrowings decreased to $60,058 with a cost of 3.66% for the nine months ended Sept. 30, 2024, down from $82,339 and a cost of 3.97% in 2023[20] Return on Assets - Return on average assets for the quarter ended September 30, 2024, was 1.66%, compared to 1.53% in the same period last year[11]