Enhanced Investments - Financial Portal

Published: 2025-04-17 21:12:00 ET

EX-99.1 2 ffin-ex99_1.htm EX-99.1 EX-99.1

     For immediate release

     For More Information:
Michelle S. Hickox, EVP & Chief Financial Officer  325.627.7155

FIRST FINANCIAL BANKSHARES ANNOUNCES FIRST QUARTER 2025 EARNINGS

ABILENE, Texas, April 17, 2025 - First Financial Bankshares, Inc. (the “Company,” “we,” “us” or “our”) (NASDAQ: FFIN) today reported earnings for the first quarter of 2025 of $61.35 million compared to earnings of $53.40 million for the same quarter a year ago. Basic and diluted earnings per share were $0.43 for the quarter ended March 31, 2025 and $0.37 for the quarter ended March 31, 2024.

“Our improved results from first quarter 2024 were primarily due to an increase in net interest income related to our balance sheet growth over the previous year. Strong deposit inflows have supported loan growth as well as continued bond investments which has supported margin growth in addition to bolstering our liquidity,” said F. Scott Dueser, Chairman and CEO. “While markets have been volatile recently, our Company remains financially strong, sound and secure as reflected in our capital levels, diversified deposit base and access to multiple liquidity sources. I appreciate our team who live our Non-negotiables every day which provides our customers with outstanding service and helped us attain the honor of being the 3rd Best Bank in the Country by Forbes Magazine,” added Mr. Dueser.

Net interest income for the first quarter of 2025 was $118.79 million compared to $116.12 million for the fourth quarter of 2024 and $100.24 million for the first quarter of 2024. The net interest margin, on a taxable equivalent basis, was 3.74 percent in the first quarter of 2025 compared to 3.67 percent in the fourth quarter of 2024 and 3.34 percent in the first quarter of 2024. Average interest-earning assets were $13.16 billion for the first quarter of 2025 compared to $12.37 billion for the same quarter a year ago.

The Company recorded a provision for credit losses of $3.53 million for the first quarter of 2025 compared to a provision for credit losses of $808 thousand for the first quarter of 2024. At March 31, 2025, the allowance for credit losses totaled $101.08 million, or 1.27 percent of loans held-for-investment (“loans” hereafter), compared to $89.56 million, or 1.24 percent of loans, at March 31, 2024. Additionally, the reserve for unfunded commitments totaled $9.21 million at March 31, 2025 compared to $7.46 million at March 31, 2024.

Net charge-offs totaled $236 thousand for the first quarter of 2025 compared to net charge-offs of $428 thousand for the first quarter of 2024. Nonperforming assets as a percentage of loans and foreclosed assets totaled 0.78 percent at March 31, 2025, compared with 0.51 percent at March 31, 2024. Classified loans totaled $245.61 million at March 31, 2025, compared to $201.59 million at March 31, 2024.

Noninterest income for the first quarter of 2025 was $30.23 million compared to $29.38 million for the first quarter of 2024, due to the following:

•

Trust fees increased to $12.65 million for the first quarter of 2025 compared to $11.38 million for the first quarter of 2024, driven by the increase in market value of trust assets managed to $10.86 billion at March 31, 2025, compared to $10.15 billion at March 31, 2024.

•

Service charges on deposits decreased to $6.18 million for the first quarter of 2025 compared with $6.25 million for the first quarter of 2024, driven by a decrease in overdraft fees.

•

Mortgage income decreased to $2.83 million for the first quarter of 2025 compared to $3.13 million for the first quarter of 2024, due to lower volume in mortgage loans originated.

Noninterest expense for the first quarter of 2025 totaled $70.34 million compared to $63.94 million for the first quarter of 2024, due to the following:

•

Salary, commissions, and employee benefit costs increased to $42.14 million for the first quarter of 2025, compared to $36.68 million in the first quarter of 2024, primarily resulting from merit-based and market driven pay increases, an increase of $1.31 million in profit sharing accruals, a $780 thousand increase in stock-based compensation and an increase of $646 thousand in officer incentive accruals. The increase in profit sharing and incentive accruals are directly related to the increase in net income over prior year.

•

Noninterest expenses, excluding salary related costs, increased $936 thousand for the first quarter of 2025 compared to the same period in 2024, largely due to increases in software amortization and debit card expenses partially offset by decreases in FDIC insurance expense and operational and other losses.

The Company’s efficiency ratio was 46.36 percent for the first quarter of 2025 compared to 48.37 percent for the first quarter of 2024.

As of March 31, 2025, consolidated total assets were $14.31 billion compared to $13.19 billion at March 31, 2024. Loans totaled $7.95 billion at March 31, 2025, compared with loans of $7.23 billion at March 31, 2024. During the first quarter of 2025, loans grew $32.51 million, or 1.67 percent annualized, when compared to December 31, 2024 balances. Deposits and Repurchase Agreements totaled $12.52 billion at March 31, 2025, compared to $11.60 billion at March 31, 2024. During the first quarter of 2025, Deposits and Repurchase Agreements grew $362.79 million, or 12.10 percent annualized, when compared to December 31, 2024 balances.

Shareholders’ equity was $1.68 billion as of March 31, 2025, compared to $1.61 billion and $1.49 billion at December 31, 2024 and March 31, 2024, respectively. The unrealized loss on the securities portfolio, net of applicable tax, totaled $388.89 million at March 31, 2025, compared to an unrealized loss of $424.29 million and $441.23 million at December 31, 2024 and March 31, 2024, respectively.

About First Financial Bankshares, Inc.

Headquartered in Abilene, Texas, First Financial Bankshares, Inc. is a financial holding company that through its subsidiary, First Financial Bank, operates multiple banking regions with 79 locations in Texas, including Abilene, Acton, Albany, Aledo, Alvarado, Beaumont, Boyd, Bridgeport, Brock, Bryan, Burleson, College Station, Cisco, Cleburne, Clyde, Conroe, Cut and Shoot, Decatur, Eastland, El Campo, Fort Worth, Franklin, Fulshear, Glen Rose, Granbury, Grapevine, Hereford, Huntsville, Keller, Kingwood, Lumberton, Magnolia, Mauriceville, Merkel, Midlothian, Mineral Wells, Montgomery, Moran, New Waverly, Newton, Odessa, Orange, Palacios, Port Arthur, Ranger, Rising Star, Roby, San Angelo, Southlake, Spring, Stephenville, Sweetwater, Tomball, Trent, Trophy Club, Vidor, Waxahachie, Weatherford, Willis, and Willow Park. The Company also operates First Financial Trust & Asset Management Company, with nine locations and First Technology Services, Inc., a technology operating company.

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
		2025				2024
ASSETS		Mar. 31,				Dec. 31,				Sept. 30,				June 30,				Mar. 31,
Cash and due from banks	$		232,943		$		259,996		$		296,188		$		263,262		$		222,464
Interest-bearing demand deposits in banks			682,362				503,417				287,476				103,315				365,397
Federal funds sold			11,750				-				-				2,800				12,300
Investment securities			4,760,431				4,617,759				4,612,299				4,573,024				4,658,526
Loans, held-for-investment			7,945,611				7,913,098				7,723,191				7,519,733				7,229,410
Allowance for credit losses			(101,080	)			(98,325	)			(99,936	)			(95,170	)			(89,562	)
Net loans, held-for-investment			7,844,531				7,814,773				7,623,255				7,424,563				7,139,848
Loans, held-for-sale			14,348				8,235				20,114				19,668				16,109
Premises and equipment, net			150,589				151,904				151,204				153,075				151,953
Goodwill			313,481				313,481				313,481				313,481				313,481
Other intangible assets			428				523				671				828				984
Other assets			301,251				309,330				278,244				310,059				310,096
Total assets	$		14,312,114		$		13,979,418		$		13,582,932		$		13,164,075		$		13,191,158

LIABILITIES AND SHAREHOLDERS' EQUITY
Noninterest-bearing deposits	$		3,356,553		$		3,348,041		$		3,303,143		$		3,289,032		$		3,348,147
Interest-bearing deposits			9,110,218				8,751,133				8,452,718				8,120,125				7,941,661
Total deposits			12,466,771				12,099,174				11,755,861				11,409,157				11,289,808
Repurchase agreements			56,606				61,416				57,557				138,950				307,297
Borrowings			26,978				135,603				25,978				23,703				26,803
Trade date payable			-				-				5,416				-				-
Other liabilities			81,498				76,665				75,929				73,239				75,883
Shareholders' equity			1,680,261				1,606,560				1,662,191				1,519,026				1,491,367
Total liabilities and shareholders' equity	$		14,312,114		$		13,979,418		$		13,582,932		$		13,164,075		$		13,191,158


	Quarter Ended
		2025			2024
INCOME STATEMENTS		Mar. 31,			Dec. 31,			Sept. 30,			June 30,			Mar. 31,
Interest income	$		167,110	$		165,792	$		159,958	$		153,673	$		149,495
Interest expense			48,321			49,675			52,849			50,400			49,253
Net interest income			118,789			116,117			107,109			103,273			100,242
Provision for credit losses			3,528			1,003			6,123			5,888			808
Net interest income after provision for credit losses			115,261			115,114			100,986			97,385			99,434
Noninterest income			30,230			30,977			32,362			31,268			29,383
Noninterest expense			70,335			70,099			66,012			65,012			63,940
Net income before income taxes			75,156			75,992			67,336			63,641			64,877
Income tax expense			13,810			13,671			12,028			11,156			11,480
Net income	$		61,346	$		62,321	$		55,308	$		52,485	$		53,397


PER COMMON SHARE DATA
Net income - basic	$	0.43	$	0.44	$	0.39	$	0.37	$	0.37
Net income - diluted		0.43		0.43		0.39		0.37		0.37
Cash dividends declared		0.18		0.18		0.18		0.18		0.18
Book value		11.75		11.24		11.63		10.63		10.44
Tangible book value		9.55		9.04		9.43		8.43		8.24
Market value		35.92		36.05		37.01		29.53		32.81
Shares outstanding - end of period		143,019,433		142,944,704		142,906,070		142,848,909		142,817,159
Average outstanding shares - basic		142,949,514		142,898,110		142,853,215		142,814,363		142,724,674
Average outstanding shares - diluted		143,355,148		143,352,067		143,188,857		143,088,930		143,029,449


PERFORMANCE RATIOS
Return on average assets	1.78	%	1.81	%	1.66	%	1.61	%	1.62	%
Return on average equity	15.12		15.17		14.00		14.43		14.43
Return on average tangible equity	18.68		18.78		17.49		18.38		18.29
Net interest margin (tax equivalent)	3.74		3.67		3.50		3.48		3.34
Efficiency ratio	46.36		46.81		46.45		47.41		48.37

FIRST FINANCIAL BANKSHARES, INC.

SELECTED FINANCIAL DATA (UNAUDITED)

(In thousands)


	Quarter Ended
		2025				2024
ALLOWANCE FOR LOAN LOSSES		Mar. 31,				Dec. 31,				Sept. 30,				June 30,				Mar. 31,
Balance at beginning of period	$		98,325		$		99,936		$		95,170		$		89,562		$		88,734
Loans charged-off			(946	)			(2,184	)			(1,279	)			(702	)			(850	)
Loan recoveries			710				243				493				400				422
Net recoveries (charge-offs)			(236	)			(1,941	)			(786	)			(302	)			(428	)
Provision for loan losses			2,991				330				5,552				5,910				1,256
Balance at end of period	$		101,080		$		98,325		$		99,936		$		95,170		$		89,562


ALLOWANCE FOR UNFUNDED COMMITMENTS
Balance at beginning of period	$	8,677		$	8,004		$	7,433		$	7,455			$	7,903
Provision for unfunded commitments		537			673			571			(22	)			(448	)
Balance at end of period	$	9,214		$	8,677		$	8,004		$	7,433			$	7,455

Allowance for loan losses /
period-end loans held-for-investment		1.27	%		1.24	%		1.29	%		1.27		%		1.24		%
Allowance for loan losses /
nonperforming loans		164.16			158.02			156.44			157.20				247.48
Net charge-offs (recoveries) / average total loans
(annualized)		0.01			0.10			0.04			0.02				0.02


	As of
		2025			2024
COMPOSITION OF LOANS HELD-FOR-INVESTMENT		Mar. 31,			Dec. 31,			Sept. 30,			June 30,			Mar. 31,
Commercial:
C&I	$		1,144,429	$		1,176,993	$		1,175,774	$		1,141,990	$		1,191,516
Municipal			338,303			369,246			333,732			359,124			211,013
Total Commercial			1,482,732			1,546,239			1,509,506			1,501,114			1,402,529
Agricultural			90,186			95,543			83,269			86,186			87,882
Real Estate:
Construction & Development			1,098,069			1,054,603			1,013,810			986,394			921,773
Farm			331,464			339,665			315,720			318,597			311,002
Non-Owner Occupied CRE			753,898			805,566			825,928			815,713			853,721
Owner Occupied CRE			1,142,618			1,083,100			1,086,750			1,049,715			1,032,845
Residential			2,217,740			2,196,767			2,112,196			1,990,604			1,918,573
Total Real Estate			5,543,789			5,479,701			5,354,404			5,161,023			5,037,914
Consumer:
Auto			679,189			638,560			618,103			615,192			549,837
Non-Auto			149,715			153,055			157,909			156,218			151,248
Total Consumer			828,904			791,615			776,012			771,410			701,085

Total loans held-for-investment	$		7,945,611	$		7,913,098	$		7,723,191	$		7,519,733	$		7,229,410


SUMMARY OF LOAN CLASSIFICATION
Special Mention	$	46,103	$	42,563	$	41,362	$	57,864	$	62,623
Substandard		199,509		191,288		188,561		161,399		138,964
Doubtful		-		-		-		-		-
Total classified loans	$	245,612	$	233,851	$	229,923	$	219,263	$	201,587


NONPERFORMING ASSETS
Nonaccrual loans	$	60,430		$	61,938		$	63,378		$	60,311		$	36,157
Accruing loans 90 days past due		1,143			287			504			231			33
Total nonperforming loans		61,573			62,225			63,882			60,542			36,190
Foreclosed assets		115			871			535			647			1,014
Total nonperforming assets	$	61,688		$	63,096		$	64,417		$	61,189		$	37,204

As a % of loans held-for-investment and foreclosed assets		0.78	%		0.80	%		0.83	%		0.81	%		0.51	%
As a % of end of period total assets		0.43			0.45			0.47			0.46			0.28

FIRST FINANCIAL BANKSHARES, INC.

SELECTED FINANCIAL DATA (UNAUDITED)

(In thousands)


	Quarter Ended
		2025							2024
CAPITAL RATIOS		Mar. 31,			Dec. 31,			Sept. 30,			June 30,			Mar. 31,
Common equity Tier 1 capital ratio			19.12	%		18.83	%		18.83	%		18.42	%		18.60	%
Tier 1 capital ratio			19.12			18.83			18.83			18.42			18.60
Total capital ratio			20.31			20.00			20.03			19.55			19.70
Tier 1 leverage ratio			12.46			12.49			12.53			12.40			12.12
Tangible common equity ratio			9.76			9.46			10.16			9.38			9.14
Equity/Assets ratio			11.74			11.49			12.24			11.54			11.31


	Quarter Ended
		2025								2024
NONINTEREST INCOME		Mar. 31,				Dec. 31,			Sept. 30,				June 30,				Mar. 31,
Trust fees	$		12,653		$		12,662	$		11,694		$		11,714		$		11,379
Service charges on deposits			6,177				6,306			6,428				6,009				6,246
Debit card fees			4,967				5,506			5,528				5,145				4,891
Credit card fees			577				617			617				672				631
Gain on sale and fees on mortgage loans			2,832				3,009			3,359				3,687				3,128
Net gain (loss) on sale of available-for-sale securities			-				-			-				-				-
Net gain (loss) on sale of foreclosed assets			(35	)			36			(30	)			(58	)			-
Net gain (loss) on sale of assets			-				214			267				2				-
Loan recoveries			574				433			1,359				664				555
Other noninterest income			2,485				2,194			3,140				3,433				2,553
Total noninterest income	$		30,230		$		30,977	$		32,362		$		31,268		$		29,383


NONINTEREST EXPENSE
Salaries, commissions and employee benefits, excluding profit sharing	$	39,157	$	37,996	$	35,262	$	35,569	$	35,003
Profit sharing expense		2,985		3,648		2,235		1,903		1,680
Net occupancy expense		3,720		3,753		3,738		3,618		3,470
Equipment expense		2,321		2,305		2,291		2,233		2,237
FDIC insurance premiums		1,575		1,511		1,514		1,508		1,965
Debit card expense		3,373		3,220		3,248		3,242		3,058
Legal, tax and professional fees		3,067		3,751		3,865		3,809		2,734
Audit fees		451		423		582		453		333
Printing, stationery and supplies		482		293		199		425		447
Amortization of intangible assets		95		147		157		157		157
Advertising, meals and public relations		1,677		1,642		1,466		1,466		1,455
Operational and other losses		540		863		955		769		1,154
Software amortization and expense		3,732		3,648		3,712		3,158		3,005
Other noninterest expense		7,160		6,899		6,788		6,702		7,242
Total noninterest expense	$	70,335	$	70,099	$	66,012	$	65,012	$	63,940

TAX EQUIVALENT YIELD ADJUSTMENT	$	2,700	$	2,673	$	2,628	$	2,572	$	2,573

FIRST FINANCIAL BANKSHARES, INC.

SELECTED FINANCIAL DATA (UNAUDITED)

(In thousands)


	Three Months Ended									Three Months Ended
	Mar. 31, 2025									Dec. 31, 2024
		Average			Tax Equivalent		Yield /				Average			Tax Equivalent		Yield /
		Balance			Interest		Rate				Balance			Interest		Rate
Interest-earning assets:
Federal funds sold	$		7,596	$		90		4.81	%	$		1,895	$		23		4.90	%
Interest-bearing demand deposits in nonaffiliated banks			286,040			3,174		4.50				308,118			3,578		4.62
Taxable securities			3,506,035			25,034		2.86				3,320,754			21,896		2.64
Tax-exempt securities			1,407,440			9,912		2.82				1,425,934			9,858		2.77
Loans			7,952,946			131,600		6.71				7,806,860			133,110		6.78
Total interest-earning assets			13,160,057	$		169,810		5.23	%			12,863,561	$		168,465		5.21	%
Noninterest-earning assets			830,055									824,757
Total assets	$		13,990,112							$		13,688,318
Interest-bearing liabilities:
Deposits	$		8,882,040	$		47,549		2.17	%	$		8,523,405	$		49,139		2.29	%
Repurchase Agreements			53,920			209		1.57				63,350			271		1.70
Borrowings			74,561			563		3.06				39,709			265		2.65
Total interest-bearing liabilities			9,010,521	$		48,321		2.17	%			8,626,464	$		49,675		2.29	%
Noninterest-bearing deposits			3,265,838									3,348,062
Other noninterest-bearing liabilities			68,218									79,271
Shareholders' equity			1,645,535									1,634,521
Total liabilities and shareholders' equity	$		13,990,112							$		13,688,318

Net interest income and margin (tax equivalent)				$		121,489		3.74	%				$		118,790		3.67	%

	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	%

FIRST FINANCIAL BANKSHARES, INC.

SELECTED FINANCIAL DATA (UNAUDITED)

(In thousands)


	Three Months Ended
	Mar. 31, 2024
		Average			Tax Equivalent		Yield /
		Balance			Interest		Rate
Interest-earning assets:
Federal funds sold	$		3,923	$		57		5.85	%
Interest-bearing demand deposits in nonaffiliated banks			344,969			4,657		5.43
Taxable securities			3,376,324			19,952		2.36
Tax-exempt securities			1,434,505			9,794		2.73
Loans			7,205,424			117,608		6.56
Total interest-earning assets			12,365,145	$		152,068		4.95	%
Noninterest-earning assets			864,885
Total assets	$		13,230,030
Interest-bearing liabilities:
Deposits	$		7,878,094	$		45,250		2.31	%
Repurchase Agreements			317,439			2,562		3.25
Borrowings			132,963			1,441		4.36
Total interest-bearing liabilities			8,328,496	$		49,253		2.38	%
Noninterest-bearing deposits			3,346,757
Other noninterest-bearing liabilities			66,134
Shareholders' equity			1,488,643
Total liabilities and shareholders' equity	$		13,230,030

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