First Financial Bankshares(US:FFIN)2025-11-07 21:14Financial Performance - Net earnings for the three months ended September 30, 2025, were $52,267 thousand, a decrease of 5.0% from $55,308 thousand in 2024[15]. - Comprehensive earnings for the nine months ended September 30, 2025, were $295,980 thousand, compared to $234,671 thousand in 2024, reflecting an increase of 26.1%[16]. - Net earnings for the period reached $161.19 million, reflecting strong performance[21]. - Net earnings for the nine months ended September 30, 2025, were $180,270,000, an increase of 11.5% compared to $161,190,000 for the same period in 2024[23]. - Net earnings for Q3 2025 were $52.27 million, down from $55.31 million in Q3 2024, with diluted earnings per share at $0.36 compared to $0.39[173]. - Year-to-date earnings growth for 2025 is nearly 12% compared to 2024, despite a $21.55 million credit loss due to fraudulent activity[173]. Asset and Loan Growth - Total assets increased to $14,841,528 thousand as of September 30, 2025, up from $13,582,932 thousand in 2024, representing a growth of 9.3%[12]. - Total loans held-for-investment increased to $8,243,625,000 as of September 30, 2025, up from $7,723,191,000 in 2024, representing a growth of 6.7%[85]. - Total deposits increased to $12,846,248 thousand as of September 30, 2025, compared to $11,755,861 thousand in 2024, an increase of 9.3%[12]. - Total loans held-for-investment as of September 30, 2024, amounted to $8,244 million, an increase from $7,991 million in 2023, reflecting a growth of approximately 3.2%[104]. Income and Expenses - Total interest income for the three months ended September 30, 2025, was $179,692 thousand, compared to $159,958 thousand in 2024, reflecting an increase of 12.3%[15]. - Total noninterest income for the nine months ended September 30, 2025, was $97,366 thousand, up from $93,012 thousand in 2024, marking a growth of 4.8%[15]. - Total noninterest expense for the first nine months of 2025 was $215.74 million, up from $194.97 million in the same period of 2024, indicating an increase of 10.6%[197]. - Salaries, commissions, and employee benefits for the first nine months of 2025 totaled $127.32 million, an increase of 14.0% from $111.65 million in 2024[198]. Credit Loss Provisions - The provision for credit losses increased to $24,435 thousand for the three months ended September 30, 2025, compared to $6,123 thousand in 2024, indicating a significant rise in credit loss provisions[15]. - Provision for credit losses increased significantly to $31,095,000 in 2025 from $12,817,000 in 2024, indicating a rise in expected credit losses[23]. - The allowance for credit losses at the end of September 2025 was $105,958,000, compared to $99,936,000 in 2024, reflecting an increase of 6.8%[85]. Shareholder Returns - Dividends per share increased to $0.19 for the three months ended September 30, 2025, compared to $0.18 in 2024, representing a growth of 5.6%[15]. - Cash dividends declared were $0.54 per share, totaling $77.20 million[21]. - Cash dividends declared increased to $0.56 per share, amounting to $80.25 million[21]. Investment and Securities - The company reported an unrealized gain of $73.48 million in available-for-sale investment securities, net of related income taxes[21]. - As of September 30, 2025, the total fair value of available-for-sale securities was $5,260,813,000, down from $4,612,299,000 as of September 30, 2024[78]. - The total amortized cost basis of available-for-sale securities was $5,651,768,000 as of September 30, 2025, with unrealized losses amounting to $413,930,000[78]. Risk Management and Loan Quality - The company has categorized its loans into five risk categories, with ongoing assessments to adjust ratings based on credit quality changes[96][97]. - Loans rated as "special mention" indicate financial weaknesses but are not expected to incur significant losses in the short term[98]. - The overall strategy includes continuous monitoring and adjustment of credit risk ratings to reflect the inherent risks in the loan portfolio[97]. Operational Metrics - Return on average assets for Q3 2025 was 1.44%, down from 1.66% in Q3 2024; return on average equity was 11.85%, down from 14.00%[174]. - The efficiency ratio improved to 45.33% for the first nine months of 2025, compared to 47.39% in the same period of 2024, reflecting better operational efficiency[197]. - The yield on earning assets increased by 16 basis points, while the rate paid on interest-bearing liabilities decreased by 23 basis points in Q3 2025 compared to Q3 2024[178].