FIRST FINANCIAL BANKSHARES ANNOUNCES FOURTH QUARTER 2023 EARNINGS RESULTS
- None.
- Decrease in net interest income, mortgage revenues, and gains on sales of securities
- Increase in FDIC insurance premiums and incentive and profit sharing expenses
- Provision for credit losses of $4.08 million for the fourth quarter of 2022
Insights
The reported earnings decline from First Financial Bankshares, Inc. is a significant metric for stakeholders, signaling a potential challenge in profitability. The decrease in net income and earnings per share (EPS) year-over-year suggests the bank's earnings power has been affected by the macroeconomic environment, particularly the Federal Reserve's aggressive interest rate hikes. This is noteworthy as EPS is a critical factor in assessing a company's profitability and often influences investor sentiment and stock valuation.
Additionally, the net interest margin (NIM) contraction from 3.47% to 3.33% year-over-year reflects the pressure on the bank's core income-generating activities. NIM is a key indicator of a bank's financial health, representing the difference between the interest income generated and the amount of interest paid out to lenders, relative to the amount of their interest-earning assets. A shrinking NIM in a rising rate environment could suggest that the cost of funds is increasing faster than the yield on assets, which could be a concern for future profitability.
The strategic maneuvers executed by First Financial Bankshares, such as restructuring the balance sheet and selling lower-yield securities to fund higher-yielding loan growth, indicate a proactive approach to asset management. This strategy is intended to enhance interest income and improve the bank's earnings profile over time. The projected earn back period of less than 18 months for the sold securities suggests confidence in the profitability of the new loans, which could be a positive indicator for future earnings.
However, the increase in noninterest expenses, including FDIC insurance premiums and incentive and profit sharing expenses, could offset some of the gains from these strategic moves. The rise in FDIC insurance premiums, partly due to a special assessment and the increase in employee-related costs reflect external and internal cost pressures that could impact the bank's efficiency ratio and overall cost structure.
From a risk perspective, the absence of a provision for credit losses in the fourth quarter of 2023, compared to the previous year, suggests a current assessment of lower credit risk within the bank's loan portfolio. However, the increase in classified loans from $150.70 million to $176.21 million year-over-year is an area that requires monitoring, as it indicates a rise in loans that are deemed to be of lower quality and higher risk.
The slight uptick in net charge-offs and the modest increase in nonperforming assets as a percentage of loans and foreclosed assets, while still relatively low, could be early indicators of potential asset quality deterioration. These factors warrant close observation, especially in a challenging economic environment where borrowers may face increased financial stress.
"2023 was a very challenging year for the banking industry due to the Federal Reserve's highest and most rapid increase in interest rates in our country's history. Despite the decline in our year-over-year net income in 2023, I am proud of the many accomplishments we achieved during the year and we continued to outperform our peer group of banks," said F. Scott Dueser, Chairman, President and CEO of First Financial Bankshares, Inc. "We are pleased that we ended 2023 having maintained our total deposit levels when compared to 2022 year-end balances primarily resulting from the addition of over 12,500 net new accounts. Additionally, we grew loans organically
As further described below, the results this quarter when compared to the same quarter a year ago included (i) a
Net earnings for the year ended December 31, 2023, totaled
Net interest income for the fourth quarter of 2023 was
The Company did not record a provision for credit losses for the fourth quarter of 2023 compared to a provision for credit losses of
For the fourth quarter of 2023, net charge-offs totaled
Noninterest income for the fourth quarter of 2023 was
- Available-for-sale securities totaling
$90.72 million $6.21 million $131 thousand - Mortgage income declined to
$1.94 million $2.90 million - Debit card fees decreased by
$875 thousand $1.11 million $375 thousand - Trust fees increased to
$10.68 million $10.12 million $9.78 billion $8.75 billion - Service charges on deposits increased to
$6.52 million $6.40 million
Noninterest expense for the fourth quarter of 2023 totaled
- Salary, commissions and employee benefit costs totaled
$35.75 million $32.96 million - FDIC insurance premiums increased to
$3.11 million $1.02 million $1.75 million
The Company's efficiency ratio was 47.26 percent for the year ended December 31, 2023, compared to 42.80 percent for the year ended December 31, 2022.
As of December 31, 2023, consolidated assets for the Company totaled
Shareholders' equity was
About First Financial Bankshares, Inc.
Headquartered in
The Company is listed on The NASDAQ Global Select Market under the trading symbol FFIN. For more information about First Financial, please visit our website at https://www.ffin.com.
Certain statements contained herein may be considered "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. These statements are based upon the belief of the Company's management, as well as assumptions made beyond information currently available to the Company's management, and may be, but not necessarily are, identified by such words as "expect," "plan," "anticipate," "target," "forecast," "project," and "goal." Because such "forward-looking statements" are subject to risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially from the Company's expectations include competition from other financial institutions and financial holding companies; the effects of and changes in trade, monetary and fiscal policies and laws, including interest rate policies of the Federal Reserve Board; economic impact of oil and gas prices, changes in the demand for loans; fluctuations in value of collateral and loan reserves; inflation, interest rate, market and monetary fluctuations; changes in consumer spending, borrowing and savings habits; and acquisitions and integration of acquired businesses, and similar variables. Other key risks are described in the Company's reports filed with the Securities and Exchange Commission, which may be obtained under "Investor Relations-Documents and Filings" on the Company's Website or by writing or calling the Company at 325.627.7155. Except as otherwise stated in this news announcement, the Company does not undertake any obligation to update publicly or revise any forward-looking statements because of new information, future events or otherwise.
FIRST FINANCIAL BANKSHARES, INC. | |||||||||||||||
CONSOLIDATED FINANCIAL SUMMARY (UNAUDITED) | |||||||||||||||
(In thousands, except share and per share data) | |||||||||||||||
As of | |||||||||||||||
2023 | 2022 | ||||||||||||||
ASSETS | Dec. 31, | Sept. 30, | June 30, | Mar. 31, | Dec. 31, | ||||||||||
Cash and due from banks | $ | 281,354 | $ | 208,277 | $ | 255,018 | $ | 224,875 | $ | 293,286 | |||||
Interest-bearing demand deposits in banks | 255,237 | 180,008 | 23,839 | 221,336 | 37,392 | ||||||||||
Investment securities | 4,732,762 | 4,652,537 | 5,066,262 | 5,298,557 | 5,474,359 | ||||||||||
Loans, held-for-investment, excluding PPP Loans | 7,148,682 | 6,994,574 | 6,777,429 | 6,576,060 | 6,441,699 | ||||||||||
PPP loans | 109 | 122 | 141 | 155 | 169 | ||||||||||
Total loans, held-for-investment | 7,148,791 | 6,994,696 | 6,777,570 | 6,576,215 | 6,441,868 | ||||||||||
Allowance for credit losses | (88,734) | (89,714) | (86,541) | (80,818) | (75,834) | ||||||||||
Net loans, held-for-investment | 7,060,057 | 6,904,982 | 6,691,029 | 6,495,397 | 6,366,034 | ||||||||||
Loans, held-for-sale | 14,253 | 12,229 | 19,220 | 11,996 | 11,965 | ||||||||||
Premises and equipment, net | 151,788 | 152,936 | 152,876 | 153,718 | 152,973 | ||||||||||
Goodwill | 313,481 | 313,481 | 313,481 | 313,481 | 313,481 | ||||||||||
Other intangible assets | 1,141 | 1,369 | 1,597 | 1,825 | 2,053 | ||||||||||
Other assets | 295,521 | 351,599 | 302,115 | 286,801 | 322,523 | ||||||||||
Total assets | $ | 13,105,594 | $ | 12,777,418 | $ | 12,825,437 | $ | 13,007,986 | $ | 12,974,066 | |||||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||||||||
Noninterest-bearing deposits | $ | 3,435,586 | $ | 3,477,553 | $ | 3,578,483 | $ | 3,890,991 | $ | 4,061,788 | |||||
Interest-bearing deposits | 7,702,714 | 7,238,970 | 7,229,077 | 7,045,427 | 6,943,719 | ||||||||||
Total deposits | 11,138,300 | 10,716,523 | 10,807,560 | 10,936,418 | 11,005,507 | ||||||||||
Repurchase Agreements | 381,928 | 621,791 | 559,479 | 608,299 | 618,829 | ||||||||||
Borrowings | 22,153 | 129,753 | 28,177 | 24,628 | 23,678 | ||||||||||
Trade date payable | - | 2,500 | - | - | - | ||||||||||
Other liabilities | 64,313 | 66,741 | 62,988 | 65,788 | 60,315 | ||||||||||
Shareholders' equity | 1,498,900 | 1,240,110 | 1,367,233 | 1,372,853 | 1,265,737 | ||||||||||
Total liabilities and shareholders' equity | $ | 13,105,594 | $ | 12,777,418 | $ | 12,825,437 | $ | 13,007,986 | $ | 12,974,066 | |||||
Quarter Ended | |||||||||||||||
2023 | 2022 | ||||||||||||||
INCOME STATEMENTS | Dec. 31, | Sept. 30, | June 30, | Mar. 31, | Dec. 31, | ||||||||||
Interest income | $ | 142,207 | $ | 135,351 | $ | 129,005 | $ | 121,508 | $ | 121,137 | |||||
Interest expense | 44,699 | 41,202 | 33,139 | 25,222 | 17,100 | ||||||||||
Net interest income | 97,508 | 94,149 | 95,866 | 96,286 | 104,037 | ||||||||||
Provision for credit losses | - | 2,276 | 5,573 | 2,781 | 4,075 | ||||||||||
Net interest income after provision for credit losses | 97,508 | 91,873 | 90,293 | 93,505 | 99,962 | ||||||||||
Noninterest income | 21,979 | 28,070 | 29,947 | 28,007 | 28,524 | ||||||||||
Noninterest expense | 63,474 | 59,539 | 57,613 | 57,256 | 57,778 | ||||||||||
Net income before income taxes | 56,013 | 60,404 | 62,627 | 64,256 | 70,708 | ||||||||||
Income tax expense | 10,031 | 10,848 | 11,754 | 11,688 | 12,040 | ||||||||||
Net income | $ | 45,982 | $ | 49,556 | $ | 50,873 | $ | 52,568 | $ | 58,668 | |||||
PER COMMON SHARE DATA | |||||||||||||||
Net income - basic | $ | 0.32 | $ | 0.35 | $ | 0.36 | $ | 0.37 | $ | 0.41 | |||||
Net income - diluted | 0.32 | 0.35 | 0.36 | 0.37 | 0.41 | ||||||||||
Cash dividends declared | 0.18 | 0.18 | 0.18 | 0.17 | 0.17 | ||||||||||
Book value | 10.50 | 8.69 | 9.58 | 9.62 | 8.87 | ||||||||||
Tangible book value | 8.30 | 6.48 | 7.37 | 7.41 | 6.66 | ||||||||||
Market value | 30.30 | 25.12 | 28.49 | 31.90 | 34.40 | ||||||||||
Shares outstanding - end of period | 142,716,939 | 142,677,069 | 142,741,196 | 142,703,531 | 142,657,871 | ||||||||||
Average outstanding shares - basic | 142,680,263 | 142,707,260 | 142,700,805 | 142,665,646 | 142,619,632 | ||||||||||
Average outstanding shares - diluted | 143,069,900 | 143,149,373 | 143,087,555 | 143,066,011 | 143,071,538 | ||||||||||
PERFORMANCE RATIOS | |||||||||||||||
Return on average assets | 1.42 | % | 1.53 | % | 1.58 | % | 1.65 | % | 1.76 | % | |||||
Return on average equity | 14.26 | 14.51 | 14.89 | 16.32 | 19.87 | ||||||||||
Return on average tangible equity | 18.92 | 18.90 | 19.33 | 21.51 | 27.20 | ||||||||||
Net interest margin (tax equivalent)* | 3.33 | 3.22 | 3.29 | 3.34 | 3.47 | ||||||||||
Efficiency ratio* | 51.97 | 47.62 | 44.74 | 44.93 | 42.39 | ||||||||||
*Calculations have been adjusted to remove effect of TEFRA disallowance | |||||||||||||||
Year Ended | ||||||
Dec. 31, | ||||||
INCOME STATEMENTS | 2023 | 2022 | ||||
Interest income | $ | 528,070 | $ | 432,854 | ||
Interest expense | 144,261 | 31,440 | ||||
Net interest income | 383,809 | 401,414 | ||||
Provision for credit losses | 10,631 | 17,427 | ||||
Net interest income after provisions for credit losses | 373,178 | 383,987 | ||||
Noninterest income | 108,003 | 131,665 | ||||
Noninterest expense | 237,882 | 234,778 | ||||
Net income before income taxes | 243,299 | 280,874 | ||||
Income tax expense | 44,322 | 46,399 | ||||
Net income | $ | 198,977 | $ | 234,475 | ||
PER COMMON SHARE DATA | ||||||
Net income - basic | $ | 1.39 | $ | 1.64 | ||
Net income - diluted | 1.39 | 1.64 | ||||
Cash dividends declared | 0.71 | 0.66 | ||||
Book value | 10.50 | 8.87 | ||||
Tangible book value | 8.30 | 6.66 | ||||
Market value | $ | 30.30 | $ | 34.40 | ||
Shares outstanding - end of period | 142,716,939 | 142,657,871 | ||||
Average outstanding shares - basic | 142,688,585 | 142,596,252 | ||||
Average outstanding shares - diluted | 142,938,977 | 143,207,899 | ||||
PERFORMANCE RATIOS | ||||||
Return on average assets | 1.55 | % | 1.76 | % | ||
Return on average equity | 14.99 | 16.72 | ||||
Return on average tangible equity | 19.65 | 21.59 | ||||
Net interest margin (tax equivalent)* | 3.29 | 3.34 | ||||
Efficiency ratio* | 47.26 | 42.80 | ||||
*Calculation has been adjusted to remove effect of TEFRA disallowance | ||||||
FIRST FINANCIAL BANKSHARES, INC. | |||||||||||||||
SELECTED FINANCIAL DATA (UNAUDITED) | |||||||||||||||
(In thousands) | |||||||||||||||
Quarter Ended | |||||||||||||||
2023 | 2022 | ||||||||||||||
ALLOWANCE FOR LOAN LOSSES | Dec. 31, | Sept. 30, | June 30, | Mar. 31, | Dec. 31, | ||||||||||
Balance at beginning of period | $ | 89,714 | $ | 86,541 | $ | 80,818 | $ | 75,834 | $ | 74,108 | |||||
Loans charged-off | (1,213) | (1,080) | (1,118) | (288) | (1,225) | ||||||||||
Loan recoveries | 233 | 432 | 319 | 565 | 320 | ||||||||||
Net recoveries (charge-offs) | (980) | (648) | (799) | 277 | (905) | ||||||||||
Provision for loan losses | - | 3,821 | 6,522 | 4,707 | 2,631 | ||||||||||
Balance at end of period | $ | 88,734 | $ | 89,714 | $ | 86,541 | $ | 80,818 | $ | 75,834 | |||||
ALLOWANCE FOR UNFUNDED COMMITMENTS | |||||||||||||||
Balance at beginning of period | $ | 7,903 | $ | 9,448 | $ | 10,397 | $ | 12,323 | $ | 10,879 | |||||
Provision for unfunded commitments | - | (1,545) | (949) | (1,926) | 1,444 | ||||||||||
Balance at end of period | $ | 7,903 | $ | 7,903 | $ | 9,448 | $ | 10,397 | $ | 12,323 | |||||
Allowance for loan losses / | |||||||||||||||
period-end loans held-for-investment | 1.24 | % | 1.28 | % | 1.28 | % | 1.23 | % | 1.18 | % | |||||
Allowance for loan losses / | |||||||||||||||
nonperforming loans | 256.36 | 229.44 | 296.13 | 334.06 | 311.75 | ||||||||||
Net charge-offs (recoveries) / average total loans | |||||||||||||||
(annualized) | 0.06 | 0.04 | 0.05 | (0.02) | 0.06 | ||||||||||
Quarter Ended | |||||||||||||||
2023 | 2022 | ||||||||||||||
COMPOSITION OF LOANS HELD-FOR-INVESTMENT | Dec. 31, | Sept. 30, | June 30, | Mar. 31, | Dec. 31, | ||||||||||
Commercial: | |||||||||||||||
C&I | $ | 1,164,702 | $ | 1,108,118 | $ | 1,021,722 | $ | 954,531 | $ | 917,148 | |||||
PPP | 109 | 122 | 141 | 155 | 169 | ||||||||||
Municipal | 214,850 | 218,358 | 215,977 | 221,379 | 221,090 | ||||||||||
Total Commercial | 1,379,661 | 1,326,598 | 1,237,840 | 1,176,065 | 1,138,407 | ||||||||||
Agricultural | 84,890 | 81,876 | 82,032 | 77,017 | 76,947 | ||||||||||
Real Estate: | |||||||||||||||
Construction & Development | 963,158 | 929,570 | 915,221 | 921,190 | 959,426 | ||||||||||
Farm | 344,954 | 341,052 | 335,644 | 307,706 | 306,322 | ||||||||||
Non-Owner Occupied CRE | 827,969 | 828,900 | 811,347 | 737,117 | 732,089 | ||||||||||
Owner Occupied CRE | 1,037,281 | 1,002,913 | 1,011,511 | 1,043,018 | 954,400 | ||||||||||
Residential | 1,834,593 | 1,788,913 | 1,698,679 | 1,628,841 | 1,575,758 | ||||||||||
Total Real Estate | 5,007,955 | 4,891,348 | 4,772,402 | 4,637,872 | 4,527,995 | ||||||||||
Consumer: | |||||||||||||||
Auto | 521,859 | 540,382 | 534,603 | 537,410 | 550,635 | ||||||||||
Non-Auto | 154,426 | 154,492 | 150,693 | 147,851 | 147,884 | ||||||||||
Total Consumer | 676,285 | 694,874 | 685,296 | 685,261 | 698,519 | ||||||||||
Total loans held-for-investment | $ | 7,148,791 | $ | 6,994,696 | $ | 6,777,570 | $ | 6,576,215 | $ | 6,441,868 | |||||
SUMMARY OF LOAN CLASSIFICATION | |||||||||||||||
Special Mention | $ | 40,834 | $ | 60,939 | $ | 66,960 | $ | 65,141 | $ | 49,382 | |||||
Substandard | 135,379 | 118,166 | 108,179 | 91,915 | 101,316 | ||||||||||
Doubtful | - | - | - | - | - | ||||||||||
Total classified loans | $ | 176,213 | $ | 179,105 | $ | 175,139 | $ | 157,056 | $ | 150,698 | |||||
NONPERFORMING ASSETS | |||||||||||||||
Nonaccrual loans | $ | 33,609 | $ | 38,812 | $ | 28,672 | $ | 24,171 | $ | 24,325 | |||||
Accruing loans 90 days past due | 1,004 | 289 | 552 | 22 | - | ||||||||||
Total nonperforming loans | 34,613 | 39,101 | 29,224 | 24,193 | 24,325 | ||||||||||
Foreclosed assets | 483 | 597 | 25 | 196 | - | ||||||||||
Total nonperforming assets | $ | 35,096 | $ | 39,698 | $ | 29,249 | $ | 24,389 | $ | 24,325 | |||||
As a % of loans held-for-investment and foreclosed assets | 0.49 | % | 0.57 | % | 0.43 | % | 0.37 | % | 0.38 | % | |||||
As a % of end of period total assets | 0.27 | 0.31 | 0.23 | 0.19 | 0.19 | ||||||||||
Quarter Ended | |||||||||||||||
2023 | 2022 | ||||||||||||||
CAPITAL RATIOS | Dec. 31, | Sept. 30, | June 30, | Mar. 31, | Dec. 31, | ||||||||||
Common equity Tier 1 capital ratio | 18.50 | % | 18.35 | % | 18.48 | % | 18.68 | % | 18.22 | % | |||||
Tier 1 capital ratio | 18.50 | 18.35 | 18.48 | 18.68 | 18.22 | ||||||||||
Total capital ratio | 19.62 | 19.49 | 19.62 | 19.79 | 19.29 | ||||||||||
Tier 1 leverage ratio | 12.06 | 12.00 | 11.81 | 11.53 | 10.96 | ||||||||||
Tangible common equity ratio | 9.26 | 7.42 | 8.41 | 8.33 | 7.51 | ||||||||||
Equity/Assets ratio | 11.44 | 9.71 | 10.66 | 10.55 | 9.76 | ||||||||||
Quarter Ended | |||||||||||||||
2023 | 2022 | ||||||||||||||
NONINTEREST INCOME | Dec. 31, | Sept. 30, | June 30, | Mar. 31, | Dec. 31, | ||||||||||
Trust fees | $ | 10,678 | $ | 10,050 | $ | 9,883 | $ | 9,845 | $ | 10,122 | |||||
Service charges on deposits | 6,523 | 6,509 | 6,310 | 6,036 | 6,397 | ||||||||||
Debit card fees | 5,024 | 5,041 | 6,720 | 4,936 | 5,899 | ||||||||||
Credit card fees | 631 | 694 | 711 | 609 | 632 | ||||||||||
Gain on sale and fees on mortgage loans | 1,940 | 3,442 | 3,534 | 2,974 | 2,904 | ||||||||||
Net gain (loss) on sale of available-for-sale securities | (6,205) | (972) | 46 | 12 | 131 | ||||||||||
Net gain (loss) on sale of foreclosed assets | 23 | (10) | (1) | 34 | - | ||||||||||
Net gain (loss) on sale of assets | (101) | 696 | - | 930 | (2) | ||||||||||
Interest on loan recoveries | 536 | 698 | 475 | 346 | 244 | ||||||||||
Other noninterest income | 2,930 | 1,922 | 2,269 | 2,285 | 2,197 | ||||||||||
Total noninterest income | $ | 21,979 | $ | 28,070 | $ | 29,947 | $ | 28,007 | $ | 28,524 | |||||
NONINTEREST EXPENSE | |||||||||||||||
Salaries, commissions and employee benefits, excluding profit sharing | $ | 34,560 | $ | 32,755 | $ | 31,796 | $ | 31,431 | $ | 32,391 | |||||
Profit sharing expense | 1,193 | 180 | (30) | 30 | 565 | ||||||||||
Net occupancy expense | 3,348 | 3,565 | 3,423 | 3,430 | 3,350 | ||||||||||
Equipment expense | 2,020 | 2,200 | 2,198 | 2,127 | 2,053 | ||||||||||
FDIC insurance premiums | 3,105 | 1,573 | 1,417 | 1,654 | 1,021 | ||||||||||
Debit card expense | 3,229 | 3,284 | 3,221 | 3,199 | 3,054 | ||||||||||
Legal, tax and professional fees | 3,125 | 3,007 | 2,847 | 2,687 | 2,814 | ||||||||||
Audit fees | 587 | 551 | 563 | 540 | 451 | ||||||||||
Printing, stationery and supplies | 492 | 512 | 740 | 710 | 473 | ||||||||||
Amortization of intangible assets | 228 | 228 | 228 | 228 | 299 | ||||||||||
Advertising, meals and public relations | 1,146 | 1,622 | 1,789 | 1,475 | 1,646 | ||||||||||
Operational and other losses | 1,096 | 959 | 856 | 931 | 982 | ||||||||||
Software amortization and expense | 3,017 | 2,441 | 2,519 | 2,311 | 2,420 | ||||||||||
Other noninterest expense | 6,328 | 6,662 | 6,046 | 6,503 | 6,259 | ||||||||||
Total noninterest expense | $ | 63,474 | $ | 59,539 | $ | 57,613 | $ | 57,256 | $ | 57,778 | |||||
TAX EQUIVALENT YIELD ADJUSTMENT * | $ | 2,649 | $ | 2,823 | $ | 2,950 | $ | 3,131 | $ | 3,751 | |||||
Year Ended | ||||||
Dec. 31, | ||||||
NONINTEREST INCOME | 2023 | 2022 | ||||
Trust fees | $ | 40,456 | $ | 39,995 | ||
Service charges on deposits | 25,378 | 24,540 | ||||
Debit card fees | 21,721 | 30,280 | ||||
Credit card fees | 2,645 | 2,585 | ||||
Gain on sale and fees on mortgage loans | 11,890 | 19,035 | ||||
Net gain (loss) on sale of available-for-sale securities | (7,119) | 2,144 | ||||
Net gain on sale of foreclosed assets | 46 | 1,451 | ||||
Net gain on sale of assets | 1,525 | 520 | ||||
Interest on loan recoveries | 2,055 | 2,840 | ||||
Other noninterest income | 9,406 | 8,275 | ||||
Total noninterest income | $ | 108,003 | $ | 131,665 | ||
NONINTEREST EXPENSE | ||||||
Salaries, commissions and employee benefits, excluding profit sharing | $ | 130,542 | $ | 129,900 | ||
Profit sharing expense | 1,373 | 4,233 | ||||
Net occupancy expense | 13,766 | 13,307 | ||||
Equipment expense | 8,545 | 9,052 | ||||
FDIC insurance premiums | 7,749 | 3,711 | ||||
Debit card expense | 12,933 | 12,231 | ||||
Legal, tax and professional fees | 11,666 | 10,888 | ||||
Audit fees | 2,241 | 1,803 | ||||
Printing, stationery and supplies | 2,454 | 2,114 | ||||
Amortization of intangible assets | 912 | 1,245 | ||||
Advertising, meals and public relations | 6,032 | 6,385 | ||||
Operational and other losses | 3,842 | 3,229 | ||||
Software amortization and expense | 10,288 | 9,963 | ||||
Other noninterest expense | 25,539 | 26,717 | ||||
Total noninterest expense | $ | 237,882 | $ | 234,778 | ||
TAX EQUIVALENT YIELD ADJUSTMENT * | $ | 11,552 | $ | 15,423 | ||
*Calculations have been adjusted to remove effect of TEFRA disallowance | ||||||
FIRST FINANCIAL BANKSHARES, INC. | |||||||||||||||||||||
SELECTED FINANCIAL DATA (UNAUDITED) | |||||||||||||||||||||
(In thousands) | |||||||||||||||||||||
Three Months Ended | Three Months Ended | ||||||||||||||||||||
Dec. 31, 2023 | Sept. 30, 2023 | ||||||||||||||||||||
Average | Tax Equivalent | Yield / | Average | Tax Equivalent | Yield / | ||||||||||||||||
Balance | Interest | Rate | Balance | Interest | Rate | ||||||||||||||||
Interest-earning assets: | |||||||||||||||||||||
Federal funds sold | $ | 1,768 | $ | 25 | 5.72 | % | $ | 2,383 | $ | 35 | 5.79 | % | |||||||||
Interest-bearing demand deposits in nonaffiliated banks | 145,839 | 1,961 | 5.33 | 55,231 | 757 | 5.44 | |||||||||||||||
Taxable securities | 3,317,114 | 19,686 | 2.37 | 3,429,290 | 19,425 | 2.27 | |||||||||||||||
Tax-exempt securities | 1,410,148 | 10,188 | 2.89 | 1,578,660 | 11,085 | 2.81 | |||||||||||||||
Loans | 7,052,463 | 112,996 | 6.36 | 6,894,064 | 106,872 | 6.15 | |||||||||||||||
Total interest-earning assets | 11,927,332 | $ | 144,856 | 4.82 | % | 11,959,628 | $ | 138,174 | 4.58 | % | |||||||||||
Noninterest-earning assets | 886,811 | 850,855 | |||||||||||||||||||
Total assets | $ | 12,814,143 | $ | 12,810,483 | |||||||||||||||||
Interest-bearing liabilities: | |||||||||||||||||||||
Deposits | $ | 7,371,260 | $ | 39,225 | 2.11 | % | $ | 7,259,252 | $ | 36,165 | 1.98 | % | |||||||||
Repurchase Agreements | 558,592 | 4,627 | 3.29 | 567,064 | 4,518 | 3.16 | |||||||||||||||
Borrowings | 78,066 | 847 | 4.30 | 54,124 | 519 | 3.80 | |||||||||||||||
Total interest-bearing liabilities | 8,007,918 | $ | 44,699 | 2.21 | % | 7,880,440 | $ | 41,202 | 2.07 | % | |||||||||||
Noninterest-bearing deposits | 3,461,544 | 3,509,809 | |||||||||||||||||||
Other noninterest-bearing liabilities | 65,524 | 65,094 | |||||||||||||||||||
Shareholders' equity | 1,279,157 | 1,355,140 | |||||||||||||||||||
Total liabilities and shareholders' equity | $ | 12,814,143 | $ | 12,810,483 | |||||||||||||||||
Net interest income and margin (tax equivalent) | $ | 100,157 | 3.33 | % | $ | 96,972 | 3.22 | % | |||||||||||||
Three Months Ended | Three Months Ended | ||||||||||||||||||||
June 30, 2023 | Mar. 31, 2023 | ||||||||||||||||||||
Average | Tax Equivalent | Yield / | Average | Tax Equivalent | Yield / | ||||||||||||||||
Balance | Interest | Rate | Balance | Interest | Rate | ||||||||||||||||
Interest-earning assets: | |||||||||||||||||||||
Federal funds sold | $ | 2,242 | $ | 30 | 5.45 | % | $ | 2,507 | $ | 32 | 5.12 | % | |||||||||
Interest-bearing demand deposits in nonaffiliated banks | 119,168 | 1,553 | 5.23 | 143,542 | 1,618 | 4.57 | |||||||||||||||
Taxable securities | 3,589,381 | 20,032 | 2.23 | 3,672,257 | 20,782 | 2.26 | |||||||||||||||
Tax-exempt securities | 1,653,418 | 11,799 | 2.85 | 1,750,533 | 12,743 | 2.91 | |||||||||||||||
Loans | 6,683,276 | 98,541 | 5.91 | 6,500,332 | 89,464 | 5.58 | |||||||||||||||
Total interest-earning assets | 12,047,485 | $ | 131,955 | 4.39 | % | 12,069,171 | $ | 124,639 | 4.19 | % | |||||||||||
Noninterest-earning assets | 842,284 | 863,342 | |||||||||||||||||||
Total assets | $ | 12,889,769 | $ | 12,932,513 | |||||||||||||||||
Interest-bearing liabilities: | |||||||||||||||||||||
Deposits | $ | 7,037,677 | $ | 27,629 | 1.57 | % | $ | 7,080,518 | $ | 21,812 | 1.25 | % | |||||||||
Repurchase Agreements | 570,071 | 3,949 | 2.78 | 577,314 | 3,045 | 2.14 | |||||||||||||||
Borrowings | 145,000 | 1,561 | 4.32 | 47,823 | 365 | 3.10 | |||||||||||||||
Total interest-bearing liabilities | 7,752,748 | $ | 33,139 | 1.71 | % | 7,705,655 | $ | 25,222 | 1.33 | % | |||||||||||
Noninterest-bearing deposits | 3,704,143 | 3,860,472 | |||||||||||||||||||
Other noninterest-bearing liabilities | 62,227 | 60,028 | |||||||||||||||||||
Shareholders' equity | 1,370,651 | 1,306,358 | |||||||||||||||||||
Total liabilities and shareholders' equity | $ | 12,889,769 | $ | 12,932,513 | |||||||||||||||||
Net interest income and margin (tax equivalent)* | $ | 98,816 | 3.29 | % | $ | 99,417 | 3.34 | % | |||||||||||||
Three Months Ended | |||||||||||||||||||||
Dec. 31, 2022 | |||||||||||||||||||||
Average | Tax Equivalent | Yield / | |||||||||||||||||||
Balance | Interest | Rate | |||||||||||||||||||
Interest-earning assets: | |||||||||||||||||||||
Federal funds sold | $ | 3,165 | $ | 36 | 4.57 | % | |||||||||||||||
Interest-bearing demand deposits in nonaffiliated banks | 160,200 | 1,579 | 3.91 | ||||||||||||||||||
Taxable securities | 3,761,206 | 21,152 | 2.25 | ||||||||||||||||||
Tax-exempt securities | 2,001,185 | 15,740 | 3.15 | ||||||||||||||||||
Loans | 6,391,703 | 86,381 | 5.36 | ||||||||||||||||||
Total interest-earning assets | 12,317,459 | $ | 124,888 | 4.02 | % | ||||||||||||||||
Noninterest-earning assets | 891,972 | ||||||||||||||||||||
Total assets | $ | 13,209,431 | |||||||||||||||||||
Interest-bearing liabilities: | |||||||||||||||||||||
Deposits | $ | 6,871,315 | $ | 13,123 | 0.76 | % | |||||||||||||||
Repurchase Agreements | 639,371 | 1,216 | 0.75 | ||||||||||||||||||
Borrowings | 287,879 | 2,761 | 3.81 | ||||||||||||||||||
Total interest-bearing liabilities | 7,798,565 | $ | 17,100 | 0.87 | % | ||||||||||||||||
Noninterest-bearing deposits | 4,179,494 | ||||||||||||||||||||
Other noninterest-bearing liabilities | 60,085 | ||||||||||||||||||||
Shareholders' equity | 1,171,287 | ||||||||||||||||||||
Total liabilities and shareholders' equity | $ | 13,209,431 | |||||||||||||||||||
Net interest income and margin (tax equivalent)* | $ | 107,788 | 3.47 | % | |||||||||||||||||
Year Ended | Year Ended | ||||||||||||||||||||
Dec. 31, 2023 | Dec. 31, 2022 | ||||||||||||||||||||
Average | Tax Equivalent | Yield / | Average | Tax Equivalent | Yield / | ||||||||||||||||
Balance | Interest | Rate | Balance | Interest | Rate | ||||||||||||||||
Interest-earning assets: | |||||||||||||||||||||
Federal funds sold | $ | 2,223 | $ | 122 | 5.50 | % | $ | 2,196 | $ | 63 | 2.85 | % | |||||||||
Interest-bearing deposits in nonaffiliated banks | 115,785 | 5,890 | 5.09 | 217,525 | 3,633 | 1.67 | |||||||||||||||
Taxable securities | 3,500,839 | 79,925 | 2.28 | 4,032,228 | 78,924 | 1.96 | |||||||||||||||
Tax exempt securities | 1,597,204 | 45,815 | 2.87 | 2,286,578 | 68,143 | 2.98 | |||||||||||||||
Loans | 6,784,352 | 407,870 | 6.01 | 5,923,594 | 297,515 | 5.02 | |||||||||||||||
Total interest-earning assets | 12,000,403 | $ | 539,622 | 4.50 | % | 12,462,121 | $ | 448,278 | 3.60 | % | |||||||||||
Noninterest-earning assets | 860,859 | 824,550 | |||||||||||||||||||
Total assets | $ | 12,861,262 | $ | 13,286,671 | |||||||||||||||||
Interest-bearing liabilities: | |||||||||||||||||||||
Deposits | $ | 7,188,171 | $ | 124,830 | 1.74 | % | $ | 6,955,783 | $ | 26,246 | 0.38 | % | |||||||||
Repurchase Agreements | 568,205 | 16,139 | 2.84 | 674,226 | 2,062 | 0.31 | |||||||||||||||
Borrowings | 81,262 | 3,292 | 4.05 | 127,865 | 3,133 | 2.45 | |||||||||||||||
Total interest-bearing liabilities | 7,837,638 | $ | 144,261 | 1.84 | % | 7,757,874 | $ | 31,441 | 0.41 | % | |||||||||||
Noninterest-bearing deposits | 3,632,559 | 4,063,740 | |||||||||||||||||||
Other noninterest-bearing liabilities | 63,238 | 62,953 | |||||||||||||||||||
Shareholders' equity | 1,327,827 | 1,402,104 | |||||||||||||||||||
Total liabilities and shareholders' equity | $ | 12,861,262 | $ | 13,286,671 | |||||||||||||||||
Net interest income and margin (tax equivalent)* | $ | 395,361 | 3.29 | % | $ | 416,837 | 3.34 | % | |||||||||||||
*Calculations have been adjusted to remove effect of TEFRA disallowance | |||||||||||||||||||||
View original content:https://www.prnewswire.com/news-releases/first-financial-bankshares-announces-fourth-quarter-2023-earnings-results-302045063.html
SOURCE First Financial Bankshares, Inc.
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