First Financial Bankshares(FFIN) - 2024 Q4 - Annual Results

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