First Financial Bankshares(US:FFIN)2025-08-01 18:33Financial Performance - Net earnings for the three months ended June 30, 2025, were $66,658 thousand, an increase of 27% from $52,485 thousand in 2024[16]. - Comprehensive earnings for the three months ended June 30, 2025, were $82,091 thousand, compared to $52,155 thousand in 2024, an increase of 57.4%[17]. - Net earnings for the six months ended June 30, 2025, were $128,004 thousand, an increase of 20.7% compared to $105,882 thousand for the same period in 2024[23]. - Net earnings for Q2 2025 were $66.66 million, a 27.00% increase from $52.49 million in Q2 2024[179]. - Diluted earnings per share for Q2 2025 was $0.47, compared to $0.37 in Q2 2024[179]. - Diluted earnings per share for the first six months of 2025 was $0.89, compared to $0.74 in the same period of 2024[181]. Asset and Loan Growth - Total assets increased to $14,376,841 thousand as of June 30, 2025, up from $13,164,075 thousand in 2024, representing an increase of 9.2%[13]. - Net loans held-for-investment rose to $7,972,152 thousand, a 7.4% increase from $7,424,563 thousand in 2024[13]. - Total loans held-for-investment as of June 30, 2025, were $8.07 billion, an increase of $161.85 million compared to December 31, 2024[208]. - The loan portfolio totaled $8,074,944,000 as of June 30, 2025, an increase from $7,519,733,000 in June 2024, with a net allowance for credit losses of $102,792,000[90]. Income and Revenue - Total interest income for the three months ended June 30, 2025, was $172,810 thousand, compared to $153,673 thousand in 2024, reflecting a growth of 12.4%[16]. - Net interest income after provision for credit losses was $120,598 thousand for the three months ended June 30, 2025, compared to $97,385 thousand in 2024, a rise of 23.9%[16]. - Tax-equivalent net interest income for Q2 2025 was $126.66 million, up from $105.85 million in Q2 2024[184]. - Noninterest income for the first six months of 2025 was $63.10 million, an increase of $2.45 million from the same period in 2024[198]. Dividends and Shareholder Equity - The company declared dividends per share of $0.19 for the three months ended June 30, 2025, compared to $0.18 in 2024, reflecting a 5.6% increase[16]. - As of June 30, 2025, total shareholders' equity increased to $1,737,352,000[20]. - Cash dividends declared increased to $0.19 per share for the quarter ending June 30, 2025, totaling $27,206,000[19]. Credit Quality and Loss Provisions - The provision for credit losses decreased to $3,132 thousand for the three months ended June 30, 2025, down from $5,888 thousand in 2024, indicating improved credit quality[16]. - The allowance for credit losses for the three months ended June 30, 2025, was reported at $102,792,000, up from $101,080,000 for the same period in 2024, reflecting a growth of about 1.7%[94]. - The total charge-offs for the three months ended June 30, 2025, were $1,189,000, compared to $702,000 for the same period in 2024, reflecting an increase of approximately 69%[96]. Investment and Securities - The Company’s investment portfolio includes obligations of state and political subdivisions, mortgage pass-through securities, corporate bonds, and municipal bonds, with fair values determined by independent pricing services[44]. - The total fair value of available-for-sale investment securities is $4,886,548,000, an increase from $4,573,024,000 as of June 30, 2024, representing a growth of approximately 6.85%[155]. - The total unrealized losses on investment securities were attributed to changes in interest rates rather than credit-related events, with no allowance for credit losses required[85]. Operational Metrics - The net interest margin for Q2 2025 was 3.81%, an increase of 33 basis points from Q2 2024[190]. - Average earning assets increased to $13.34 billion in Q2 2025, compared to $12.23 billion in Q2 2024, driven by a $640.04 million increase in loans[184]. - Total noninterest expense for Q2 2025 was $71.74 million, compared to $65.01 million in Q2 2024, resulting in an efficiency ratio of 44.97% for Q2 2025, improved from 47.41% in Q2 2024[200]. Regulatory and Accounting Changes - ASU 2023-02 allows entities to account for qualifying tax equity investments using the proportional amortization method, which is not expected to significantly impact financial statements[34]. - ASU 2023-07 expands segment disclosure requirements, effective for annual financial statements in 2024, with no significant impact anticipated on financial statements[35]. - ASU 2023-09 requires more detailed disclosures in tax rate reconciliations, effective for annual reporting periods beginning after December 15, 2024, with no significant impact expected[36][38].