First Financial Bankshares Inc 8-K, filed Oct 17, 2024

First Financial Bankshares Inc (FFIN)

8-K 2024-10-17 For: 2024-10-17

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Added on April 09, 2026

About this 8-K

First Financial Bankshares Inc filed this 8-K on October 17, 2024.

Items reported

Item 2.02: Financial results
Item 9.01: Financial statements and exhibits

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Texas	0-07674	75-0944023
(State or other jurisdiction of incorporation or organization)	(Commission File No.)	(I.R.S. Employer Identification No.)

	400 Pine Street, Abilene, Texas 79601
	(Address of Principal Executive Offices and Zip Code)

	Registrant’s Telephone Number (325) 627-7155


☐		Written communications pursuant to Rule 425 under the Securities Act (17 CFR 203.425)
☐		Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐		Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2 (b))
☐		Pre-commencement communications pursuant to Rule 13e-4 (c) under the Exchange Act (17 CFR 240.13 e-4 (c))


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, $0.01 par value	FFIN	The Nasdaq Global Select Market


		FIRST FINANCIAL BANKSHARES, INC.
		(Registrant)

DATE: October 17, 2024	By:	/s/ F. Scott Dueser
		F. SCOTT DUESER
		Chairman, President and Chief Executive Officer


	As of
		2024												2023
ASSETS		Sept. 30,				June 30,				Mar. 31,				Dec. 31,				Sept. 30,
Cash and due from banks	$		296,188		$		263,262		$		222,464		$		281,354		$		208,277
Interest-bearing demand deposits in banks			287,476				103,315				365,397				255,237				180,008
Federal funds sold			-				2,800				12,300				-				-
Investment securities			4,612,299				4,573,024				4,658,526				4,732,762				4,652,537
Loans, held-for-investment			7,723,191				7,519,733				7,229,410				7,148,791				6,994,696
Allowance for credit losses			(99,936	)			(95,170	)			(89,562	)			(88,734	)			(89,714	)
Net loans, held-for-investment			7,623,255				7,424,563				7,139,848				7,060,057				6,904,982
Loans, held-for-sale			20,114				19,668				16,109				14,253				12,229
Premises and equipment, net			151,204				153,075				151,953				151,788				152,936
Goodwill			313,481				313,481				313,481				313,481				313,481
Other intangible assets			671				828				984				1,141				1,369
Other assets			278,244				310,059				310,096				295,521				351,599
Total assets	$		13,582,932		$		13,164,075		$		13,191,158		$		13,105,594		$		12,777,418

LIABILITIES AND SHAREHOLDERS' EQUITY
Noninterest-bearing deposits	$		3,303,143		$		3,289,032		$		3,348,147		$		3,435,586		$		3,477,553
Interest-bearing deposits			8,452,718				8,120,125				7,941,661				7,702,714				7,238,970
Total deposits			11,755,861				11,409,157				11,289,808				11,138,300				10,716,523
Repurchase agreements			57,557				138,950				307,297				381,928				621,791
Borrowings			25,978				23,703				26,803				22,153				129,753
Trade date payable			5,416				-				-				-				2,500
Other liabilities			75,929				73,239				75,883				64,313				66,741
Shareholders' equity			1,662,191				1,519,026				1,491,367				1,498,900				1,240,110
Total liabilities and shareholders' equity	$		13,582,932		$		13,164,075		$		13,191,158		$		13,105,594		$		12,777,418


	Quarter Ended
		2024									2023
INCOME STATEMENTS		Sept. 30,			June 30,			Mar. 31,			Dec. 31,			Sept. 30,
Interest income	$		159,958	$		153,673	$		149,495	$		142,207	$		135,351
Interest expense			52,849			50,400			49,253			44,699			41,202
Net interest income			107,109			103,273			100,242			97,508			94,149
Provision for credit losses			6,123			5,888			808			-			2,276
Net interest income after provision for credit losses			100,986			97,385			99,434			97,508			91,873
Noninterest income			32,362			31,268			29,383			21,979			28,070
Noninterest expense			66,012			65,012			63,940			63,474			59,539
Net income before income taxes			67,336			63,641			64,877			56,013			60,404
Income tax expense			12,028			11,156			11,480			10,031			10,848
Net income	$		55,308	$		52,485	$		53,397	$		45,982	$		49,556


PER COMMON SHARE DATA
Net income - basic	$	0.39	$	0.37	$	0.37	$	0.32	$	0.35
Net income - diluted		0.39		0.37		0.37		0.32		0.35
Cash dividends declared		0.18		0.18		0.18		0.18		0.18
Book value		11.63		10.63		10.44		10.50		8.69
Tangible book value		9.43		8.43		8.24		8.30		6.48
Market value		37.01		29.53		32.81		30.30		25.12
Shares outstanding - end of period		142,906,070		142,848,909		142,817,159		142,716,939		142,677,069
Average outstanding shares - basic		142,853,215		142,814,363		142,724,674		142,680,263		142,707,260
Average outstanding shares - diluted		143,188,857		143,088,930		143,029,449		143,069,900		143,149,373


PERFORMANCE RATIOS
Return on average assets	1.66	%	1.61	%	1.62	%	1.42	%	1.53	%
Return on average equity	14.00		14.43		14.43		14.26		14.51
Return on average tangible equity	17.49		18.38		18.29		18.92		18.90
Net interest margin (tax equivalent)	3.50		3.48		3.34		3.33		3.22
Efficiency ratio	46.45		47.41		48.37		51.97		47.62


	Nine Months Ended
	Sept. 30,
INCOME STATEMENTS		2024				2023
Interest income	$		463,126		$		385,864
Interest expense			152,502				99,563
Net interest income			310,624				286,301
Provision for credit losses			12,817				10,631
Net interest income after provisions for credit losses			297,807				275,670
Noninterest income			93,012				86,025
Noninterest expense			194,965				174,407
Net income before income taxes			195,854				187,288
Income tax expense			34,664				34,291
Net income	$		161,190		$		152,997

PER COMMON SHARE DATA
Net income - basic	$		1.13		$		1.07
Net income - diluted			1.13				1.07
Cash dividends declared			0.54				0.53
Book value			11.63				8.69
Tangible book value			9.43				6.48
Market value	$		37.01		$		25.12
Shares outstanding - end of period			142,906,070				142,677,069
Average outstanding shares - basic			142,797,621				142,691,389
Average outstanding shares - diluted			143,159,652				143,042,858

PERFORMANCE RATIOS
Return on average assets			1.63	%			1.59	%
Return on average equity			14.28				15.22
Return on average tangible equity			18.04				19.88
Net interest margin (tax equivalent)			3.44				3.28
Efficiency ratio			47.39				45.75


ALLOWANCE FOR UNFUNDED COMMITMENTS
Balance at beginning of period	$	7,433		$	7,455			$	7,903			$	7,903		$	9,448
Provision for unfunded commitments		571			(22	)			(448	)			-			(1,545	)
Balance at end of period	$	8,004		$	7,433			$	7,455			$	7,903		$	7,903

Allowance for loan losses /
period-end loans held-for-investment		1.29	%		1.27		%		1.24		%		1.24	%		1.28		%
Allowance for loan losses /
nonperforming loans		156.44			157.20				247.48				256.36			229.44
Net charge-offs (recoveries) / average total loans
(annualized)		0.04			0.02				0.02				0.06			0.04


SUMMARY OF LOAN CLASSIFICATION
Special Mention	$	41,362	$	57,864	$	62,623	$	40,834	$	60,939
Substandard		188,561		161,399		138,964		135,379		118,166
Doubtful		-		-		-		-		-
Total classified loans	$	229,923	$	219,263	$	201,587	$	176,213	$	179,105


NONPERFORMING ASSETS
Nonaccrual loans	$	63,378		$	60,311		$	36,157		$	33,609		$	38,812
Accruing loans 90 days past due		504			231			33			1,004			289
Total nonperforming loans		63,882			60,542			36,190			34,613			39,101
Foreclosed assets		535			647			1,014			483			597
Total nonperforming assets	$	64,417		$	61,189		$	37,204		$	35,096		$	39,698

As a % of loans held-for-investment and foreclosed assets		0.83	%		0.81	%		0.51	%		0.49	%		0.57	%
As a % of end of period total assets		0.47			0.46			0.28			0.27			0.31


NONINTEREST EXPENSE
Salaries, commissions and employee benefits, excluding profit sharing	$	35,262	$	35,569	$	35,003	$	34,560	$	32,755
Profit sharing expense		2,235		1,903		1,680		1,193		180
Net occupancy expense		3,738		3,618		3,470		3,348		3,565
Equipment expense		2,291		2,233		2,237		2,020		2,200
FDIC insurance premiums		1,514		1,508		1,965		3,105		1,573
Debit card expense		3,248		3,242		3,058		3,229		3,284
Legal, tax and professional fees		3,865		3,809		2,734		3,125		3,007
Audit fees		582		453		333		587		551
Printing, stationery and supplies		199		425		447		492		512
Amortization of intangible assets		157		157		157		228		228
Advertising, meals and public relations		1,466		1,466		1,455		1,146		1,622
Operational and other losses		955		769		1,154		1,096		959
Software amortization and expense		3,712		3,158		3,005		3,017		2,441
Other noninterest expense		6,788		6,702		7,242		6,328		6,662
Total noninterest expense	$	66,012	$	65,012	$	63,940	$	63,474	$	59,539

TAX EQUIVALENT YIELD ADJUSTMENT		2,628	$	2,572	$	2,573	$	2,649	$	2,823


	Three Months Ended									Three Months Ended
	Sept. 30, 2024									June 30, 2024
		Average			Tax Equivalent		Yield /				Average			Tax Equivalent		Yield /
		Balance			Interest		Rate				Balance			Interest		Rate
Interest-earning assets:
Federal funds sold	$		2,901	$		43		5.84	%	$		5,160	$		74		5.81	%
Interest-bearing demand deposits in nonaffiliated banks			200,756			2,716		5.38				159,707			2,292		5.77
Taxable securities			3,211,490			19,866		2.47				3,250,684			19,912		2.45
Tax-exempt securities			1,418,214			9,742		2.75				1,404,706			9,730		2.77
Loans			7,643,238			130,220		6.78				7,405,297			124,237		6.75
Total interest-earning assets			12,476,599	$		162,587		5.18	%			12,225,554	$		156,245		5.14	%
Noninterest-earning assets			817,757									855,719
Total assets	$		13,294,356							$		13,081,273
Interest-bearing liabilities:
Deposits	$		8,240,938	$		51,994		2.51	%	$		8,020,247	$		48,414		2.43	%
Repurchase Agreements			100,892			740		2.92				212,590			1,895		3.59
Borrowings			24,670			116		1.87				22,932			91		1.60
Total interest-bearing liabilities			8,366,500	$		52,850		2.51	%			8,255,769	$		50,400		2.46	%
Noninterest-bearing deposits			3,279,486									3,289,906
Other noninterest-bearing liabilities			76,274									72,464
Shareholders' equity			1,572,096									1,463,134
Total liabilities and shareholders' equity	$		13,294,356							$		13,081,273

Net interest income and margin (tax equivalent)				$		109,737		3.50	%				$		105,845		3.48	%

	Three Months Ended									Three Months Ended
	Mar. 31, 2024									Dec. 31, 2023
		Average			Tax Equivalent		Yield /				Average			Tax Equivalent		Yield /
		Balance			Interest		Rate				Balance			Interest		Rate
Interest-earning assets:
Federal funds sold	$		3,923	$		57		5.85	%	$		1,768	$		25		5.72	%
Interest-bearing demand deposits in nonaffiliated banks			344,969			4,657		5.43				145,839			1,961		5.33
Taxable securities			3,376,324			19,952		2.36				3,317,114			19,686		2.37
Tax-exempt securities			1,434,505			9,794		2.73				1,410,148			10,188		2.89
Loans			7,205,424			117,608		6.56				7,052,463			112,996		6.36
Total interest-earning assets			12,365,145	$		152,068		4.95	%			11,927,332	$		144,856		4.82	%
Noninterest-earning assets			864,885									886,811
Total assets	$		13,230,030							$		12,814,143
Interest-bearing liabilities:
Deposits	$		7,878,094	$		45,250		2.31	%	$		7,371,260	$		39,225		2.11	%
Repurchase Agreements			317,439			2,562		3.25				558,592			4,627		3.29
Borrowings			132,963			1,441		4.36				78,066			847		4.30
Total interest-bearing liabilities			8,328,496	$		49,253		2.38	%			8,007,918	$		44,699		2.21	%
Noninterest-bearing deposits			3,346,757									3,461,544
Other noninterest-bearing liabilities			66,134									65,524
Shareholders' equity			1,488,643									1,279,157
Total liabilities and shareholders' equity	$		13,230,030							$		12,814,143

Net interest income and margin (tax equivalent)				$		102,815		3.34	%				$		100,157		3.33	%

	Three Months Ended
	Sept. 30, 2023
		Average			Tax Equivalent		Yield /
		Balance			Interest		Rate
Interest-earning assets:
Federal funds sold	$		2,383	$		35		5.79	%
Interest-bearing demand deposits in nonaffiliated banks			55,231			757		5.44
Taxable securities			3,429,290			19,425		2.27
Tax-exempt securities			1,578,660			11,085		2.81
Loans			6,894,064			106,872		6.15
Total interest-earning assets			11,959,628	$		138,174		4.58	%
Noninterest-earning assets			850,855
Total assets	$		12,810,483
Interest-bearing liabilities:
Deposits	$		7,259,252	$		36,165		1.98	%
Repurchase Agreements			567,064			4,518		3.16
Borrowings			54,124			519		3.80
Total interest-bearing liabilities			7,880,440	$		41,202		2.07	%
Noninterest-bearing deposits			3,509,809
Other noninterest-bearing liabilities			65,094
Shareholders' equity			1,355,140
Total liabilities and shareholders' equity	$		12,810,483

Net interest income and margin (tax equivalent)				$		96,972		3.22	%


	Quarter Ended
		2024												2023
ALLOWANCE FOR LOAN LOSSES		Sept. 30,				June 30,				Mar. 31,				Dec. 31,				Sept. 30,
Balance at beginning of period	$		95,170		$		89,562		$		88,734		$		89,714		$		86,541
Loans charged-off			(1,279	)			(702	)			(850	)			(1,213	)			(1,080	)
Loan recoveries			493				400				422				233				432
Net recoveries (charge-offs)			(786	)			(302	)			(428	)			(980	)			(648	)
Provision for loan losses			5,552				5,910				1,256				-				3,821
Balance at end of period	$		99,936		$		95,170		$		89,562		$		88,734		$		89,714


	As of
		2024									2023
COMPOSITION OF LOANS HELD-FOR-INVESTMENT		Sept. 30,			June 30,			Mar. 31,			Dec. 31,			Sept. 30,
Commercial:
C&I	$		1,175,774	$		1,141,990	$		1,191,516	$		1,164,811	$		1,108,240
Municipal			333,732			359,124			211,013			214,850			218,358
Total Commercial			1,509,506			1,501,114			1,402,529			1,379,661			1,326,598
Agricultural			83,269			86,186			87,882			84,890			81,876
Real Estate:
Construction & Development			1,013,810			986,394			921,773			963,158			929,570
Farm			315,720			318,597			311,002			344,954			341,052
Non-Owner Occupied CRE			825,928			815,713			853,721			827,969			828,900
Owner Occupied CRE			1,086,750			1,049,715			1,032,845			1,037,281			1,002,913
Residential			2,112,196			1,990,604			1,918,573			1,834,593			1,788,913
Total Real Estate			5,354,404			5,161,023			5,037,914			5,007,955			4,891,348
Consumer:
Auto			618,103			615,192			549,837			521,859			540,382
Non-Auto			157,909			156,218			151,248			154,426			154,492
Total Consumer			776,012			771,410			701,085			676,285			694,874

Total loans held-for-investment	$		7,723,191	$		7,519,733	$		7,229,410	$		7,148,791	$		6,994,696


	Quarter Ended
		2024									2023
CAPITAL RATIOS		Sept. 30,			June 30,			Mar. 31,			Dec. 31,			Sept. 30,
Common equity Tier 1 capital ratio			18.83	%		18.42	%		18.60	%		18.50	%		18.35	%
Tier 1 capital ratio			18.83			18.42			18.60			18.50			18.35
Total capital ratio			20.03			19.55			19.70			19.62			19.49
Tier 1 leverage ratio			12.53			12.40			12.12			12.06			12.00
Tangible common equity ratio			10.16			9.38			9.14			9.26			7.42
Equity/Assets ratio			12.24			11.54			11.31			11.44			9.71


	Quarter Ended
		2024											2023
NONINTEREST INCOME		Sept. 30,				June 30,				Mar. 31,			Dec. 31,				Sept. 30,
Trust fees	$		11,694		$		11,714		$		11,379	$		10,678		$		10,050
Service charges on deposits			6,428				6,009				6,246			6,523				6,509
Debit card fees			5,528				5,145				4,891			5,024				5,041
Credit card fees			617				672				631			631				694
Gain on sale and fees on mortgage loans			3,359				3,687				3,128			1,940				3,442
Net gain (loss) on sale of available-for-sale securities			-				-				-			(6,205	)			(972	)
Net gain (loss) on sale of foreclosed assets			(30	)			(58	)			-			23				(10	)
Net gain (loss) on sale of assets			267				2				-			(101	)			696
Interest on loan recoveries			1,359				664				555			536				698
Other noninterest income			3,140				3,433				2,553			2,930				1,922
Total noninterest income	$		32,362		$		31,268		$		29,383	$		21,979		$		28,070