First Financial Bankshares(US:FFIN)2024-11-04 20:57Financial Performance - 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, representing a growth of 6.3%[7] - Net loans held-for-investment rose to $7,623,255 thousand, compared to $6,904,982 thousand a year ago, marking an increase of 10.4%[7] - Total deposits reached $11,755,861 thousand, up from $10,716,523 thousand, reflecting a year-over-year growth of 9.7%[7] - Shareholders' equity increased to $1,662,191 thousand, compared to $1,240,110 thousand in the prior year, indicating a significant rise of 34.0%[7] - Net earnings for the three months ended September 30, 2024, were $55,308 thousand, a 11.1% increase from $49,556 thousand in the same period of 2023[10] - Net earnings for the nine months ended September 30, 2024, were $161,190, compared to $152,997 for the same period in 2023, representing a growth of approximately 5.8%[18] - Basic and diluted net earnings per share for the three months ended September 30, 2024, were both $0.39, compared to $0.35 in the same period of 2023, indicating an increase of 11.4%[9] Income and Expenses - Total interest income for the three months ended September 30, 2024, was $159,958 thousand, an increase of 18.2% from $135,351 thousand in the same period of 2023[9] - Net interest income after provision for credit losses for the three months ended September 30, 2024, was $100,986 thousand, up 9.8% from $91,873 thousand in the prior year[9] - Noninterest income totaled $32,362 thousand for the three months ended September 30, 2024, compared to $28,070 thousand in the same period of 2023, reflecting a growth of 8.2%[9] - Total noninterest expense increased to $66,012 thousand for the three months ended September 30, 2024, from $59,539 thousand in the same period of 2023, representing an increase of 10.3%[9] - The provision for credit losses for the three months ended September 30, 2024, was $6,123 thousand, significantly higher than $2,276 thousand in the same period of 2023, reflecting increased credit risk[9] Deposits and Loans - Interest-bearing deposits increased to $8,452,718 thousand, up from $7,238,970 thousand, representing a growth of 16.7%[7] - Noninterest-bearing deposits decreased to $3,303,143 thousand from $3,477,553 thousand, a decline of 5.0% year-over-year[7] - Total loans held-for-investment increased to $7,723,191,000 as of September 30, 2024, up 10.4% from $6,994,696,000 in 2023[82] - The total commercial loan portfolio reached $1,509,506,000 as of September 30, 2024, up from $1,326,598,000 in 2023, representing a 13.8% increase[82] - The total consumer loan portfolio increased to $776,012,000 as of September 30, 2024, compared to $694,874,000 in 2023, reflecting an increase of 11.7%[82] Credit Losses and Risk Management - The allowance for credit losses was $99,936 thousand, up from $89,714 thousand, indicating a rise of 11.3%[7] - The company uses a collective reserve methodology for estimating the allowance for credit losses, considering historical default rates and economic conditions[53] - The allowance for credit losses is adjusted based on the company's historical default and loss experience, with significant economic variables impacting the estimates[55] - As of September 30, 2024, the reserve for unfunded commitments totaled $8,004,000, an increase from $7,903,000 at the same date in 2023[60] - The total amount of loans rated substandard increased to $15,000,000 in 2024 from $3,000,000 in 2023, reflecting a significant rise of 400%[101] Stock and Shareholder Information - The company reported a total of 142,906,070 shares issued as of September 30, 2024, compared to 142,677,069 shares a year earlier, reflecting a slight increase of 0.2%[7] - Cash dividends declared per share remained stable at $0.18 for both the three months ended September 30, 2024, and September 30, 2023[9] - Cash dividends declared were $0.54 per share for the nine months ended September 30, 2024, compared to $0.53 per share for the same period in 2023[14] - The company repurchased and retired 101,337 shares at an average price of $26.99 per share during September 2023[24] Regulatory and Accounting Changes - ASU 2022-06 extends the reference rate reform relief guidance until December 31, 2024, without significant impact on the financial statements[29] - ASU 2023-02 allows for proportional amortization of qualifying tax equity investments, early adopted by the company, with no significant impact on financial statements[30] - ASU 2023-09 requires detailed disclosures on income tax rates and expenses, effective for annual periods after December 15, 2024, with no significant impact expected[31] Future Outlook - The company is focusing on maintaining asset quality across all sectors while exploring opportunities for market expansion and new product development[105][106][107][109][110][111][112] - Future outlook remains positive with strategic initiatives aimed at enhancing operational efficiency and market presence[105][106][107][109][110][111][112]