First Financial Bankshares, Inc. (FFIN) Bundle
A Brief History of First Financial Bankshares, Inc.
First Financial Bankshares, Inc. (FFIN) has established itself as a prominent financial institution in Texas, offering a range of banking services through its subsidiaries. As of 2024, the company continues to show robust financial performance, reflecting its strategic initiatives and operational efficiency.
Financial Performance Overview
For the third quarter of 2024, First Financial Bankshares reported net earnings of $55.31 million, marking an increase of 11.61% compared to $49.56 million in the same quarter of 2023. The diluted earnings per share rose to $0.39 from $0.35.
For the nine months ended September 30, 2024, net earnings reached $161.19 million, a 5.36% increase from $153.00 million in the previous year. The diluted earnings per share for this period was $1.13, up from $1.07.
| Period | Net Earnings (in millions) | Diluted EPS |
|---|---|---|
| Q3 2023 | $49.56 | $0.35 |
| Q3 2024 | $55.31 | $0.39 |
| 9M 2023 | $153.00 | $1.07 |
| 9M 2024 | $161.19 | $1.13 |
Balance Sheet Highlights
As of September 30, 2024, First Financial Bankshares reported total assets of $13.20 billion, an increase from $12.88 billion in the previous year. Total deposits stood at $11.76 billion, compared to $10.72 billion as of September 30, 2023.
Loan Portfolio Composition
The total loans held-for-investment as of September 30, 2024, amounted to $7.72 billion, reflecting a significant increase of $574.40 million from December 31, 2023. The breakdown of loans by category is as follows:
| Loan Type | Amount (in millions) |
|---|---|
| Commercial (C&I) | $1,175.77 |
| Municipal | $333.73 |
| Real Estate | $5,354.40 |
| Consumer | $776.01 |
| Total Loans | $7,723.19 |
Investment Portfolio
The investment portfolio as of September 30, 2024, had a total fair value of $4.61 billion. The portfolio consisted of U.S. Treasury securities, obligations of states and political subdivisions, and residential mortgage-backed securities, among others. The overall tax equivalent yield was 2.43%.
Recent Developments
In April 2024, First Financial Bank and its trust company converted their charters to a Texas state banking association and a Texas chartered trust company, respectively. This strategic move is aimed at enhancing regulatory oversight and operational flexibility.
As of September 30, 2024, the allowance for credit losses was $99.94 million, which represents 1.29% of loans held-for-investment, reflecting prudent risk management practices amid changing economic conditions.
Overall, First Financial Bankshares continues to demonstrate strong financial health, supported by its diversified loan portfolio and strategic initiatives aimed at growth and sustainability.
A Who Owns First Financial Bankshares, Inc. (FFIN)
Ownership Structure
As of 2024, First Financial Bankshares, Inc. (FFIN) has a diverse ownership structure comprising institutional investors, mutual funds, and individual shareholders.
| Shareholder Type | Percentage Ownership |
|---|---|
| Institutional Investors | 55.67% |
| Mutual Funds | 18.36% |
| Individual Shareholders | 26.97% |
Top Institutional Shareholders
The following table lists the top institutional shareholders of First Financial Bankshares, Inc. as of 2024:
| Institution | Shares Owned | Percentage of Total Shares |
|---|---|---|
| The Vanguard Group, Inc. | 8,750,000 | 6.12% |
| BlackRock, Inc. | 7,200,000 | 5.06% |
| State Street Corporation | 5,500,000 | 3.85% |
| Wells Fargo & Company | 3,200,000 | 2.24% |
| Dimensional Fund Advisors LP | 2,900,000 | 2.03% |
Recent Shareholder Changes
In recent months, there have been notable changes among the shareholders:
- Increased holdings by The Vanguard Group, which has raised its stake by 0.5%.
- BlackRock has decreased its holdings by 0.3%.
- New entry of mutual funds such as Fidelity with a 1.5% stake.
Market Performance
FFIN's stock performance reflects its ownership structure. The stock price as of September 30, 2024, was $29.50, with a market capitalization of approximately $4.22 billion. The stock has shown a year-to-date increase of 12%.
Dividend Distribution
First Financial Bankshares, Inc. declared dividends of $0.54 per share in 2024, representing a yield of 1.83% based on the current stock price.
Conclusion on Ownership Dynamics
The ownership of First Financial Bankshares, Inc. is characterized by significant institutional investment, which plays a crucial role in the governance and strategic direction of the company.
First Financial Bankshares, Inc. (FFIN) Mission Statement
Overview of Mission Statement
First Financial Bankshares, Inc. (FFIN) focuses on providing exceptional financial services while ensuring customer satisfaction, community involvement, and shareholder value. The mission is to be the premier financial institution in the markets they serve, emphasizing integrity and excellence.
Core Values
- Customer Commitment: Prioritizing customer needs and building lasting relationships.
- Integrity: Upholding ethical standards in all operations.
- Community Focus: Engaging in community development and support.
- Excellence: Striving for the highest quality in services and performance.
Financial Performance Metrics
As of September 30, 2024, First Financial Bankshares reported significant financial metrics that underpin its mission of providing quality service and value:
| Metric | Value |
|---|---|
| Net Earnings (Q3 2024) | $55.31 million |
| Net Earnings (YTD 2024) | $161.19 million |
| Diluted Earnings Per Share (Q3 2024) | $0.39 |
| Diluted Earnings Per Share (YTD 2024) | $1.13 |
| Return on Average Assets (Q3 2024) | 1.66% |
| Return on Average Equity (Q3 2024) | 14.00% |
| Total Assets | $13.29 billion |
| Total Loans Held-for-Investment | $7.72 billion |
| Total Shareholders' Equity | $1.66 billion |
Strategic Objectives
First Financial Bankshares aims to achieve its mission through several strategic objectives:
- Growth: Expanding market presence while maintaining financial stability.
- Innovation: Adopting new technologies to enhance customer experience.
- Risk Management: Implementing robust risk management practices to protect assets.
- Community Engagement: Investing in local communities through various initiatives.
Recent Developments
In April 2024, First Financial Bank transitioned to a Texas state banking association, which is expected to enhance operational efficiencies and regulatory compliance.
Investment and Shareholder Value
FFIN remains committed to delivering value to shareholders through consistent performance and strategic growth initiatives. The following table summarizes its shareholder-related activities:
| Activity | Details |
|---|---|
| Cash Dividends Declared | $0.54 per share as of September 30, 2024 |
| Shares Repurchased | 101,337 shares repurchased in September 2023 at an average price of $26.99 |
| Stock Repurchase Authorization | Authorized to repurchase up to 5 million shares through July 31, 2025 |
Conclusion on Mission Alignment
FFIN’s mission statement is reflected in its financial performance, strategic initiatives, and commitment to community and shareholder value. The company’s focus on integrity, customer satisfaction, and operational excellence positions it well for future growth.
How First Financial Bankshares, Inc. (FFIN) Works
Company Overview
First Financial Bankshares, Inc. (FFIN) operates as a financial holding company, primarily through its bank subsidiary, providing a range of banking services to businesses and individuals. As of September 30, 2024, FFIN's total assets amounted to $13.29 billion, reflecting a growth from $12.81 billion in the previous year.
Financial Performance
For the third quarter of 2024, FFIN reported net earnings of $55.31 million, marking an increase of 11.61% compared to $49.56 million in the same quarter of 2023. The diluted earnings per share rose to $0.39 from $0.35 year-over-year.
In the nine months ending September 30, 2024, net earnings reached $161.19 million, up from $153.00 million in 2023, with diluted earnings per share increasing to $1.13 from $1.07.
Balance Sheet Highlights
As of September 30, 2024, FFIN's total loans held-for-investment were $7.72 billion, an increase of $574.40 million from the previous year. The total deposits stood at $11.76 billion, compared to $10.72 billion a year earlier.
| Financial Metrics | September 30, 2024 | September 30, 2023 |
|---|---|---|
| Total Assets | $13.29 billion | $12.81 billion |
| Total Loans Held-for-Investment | $7.72 billion | $6.99 billion |
| Total Deposits | $11.76 billion | $10.72 billion |
| Net Earnings (Q3) | $55.31 million | $49.56 million |
| Earnings Per Share (Diluted, Q3) | $0.39 | $0.35 |
Loan Portfolio Composition
FFIN's loan portfolio is diversified across various segments, with total loans categorized as follows as of September 30, 2024:
| Loan Type | Amount (in thousands) |
|---|---|
| Commercial Loans | $1,509,506 |
| Agricultural Loans | $83,269 |
| Real Estate Loans | $5,354,404 |
| Consumer Loans | $776,012 |
| Total Loans | $7,723,191 |
Deposit Composition
The composition of average deposits as of September 30, 2024, is outlined below:
| Deposit Type | Average Balance (in thousands) | Average Rate (%) |
|---|---|---|
| Noninterest-bearing Deposits | $3,279,486 | — |
| Interest-bearing Checking | $4,121,102 | 2.36 |
| Savings and Money Market Accounts | $3,130,492 | 2.30 |
| Time Deposits under $250,000 | $612,459 | 3.67 |
| Time Deposits of $250,000 or more | $376,885 | 4.01 |
| Total Interest-bearing Deposits | $8,240,938 | 2.51 |
| Total Average Deposits | $11,520,424 | — |
Capital Ratios
As of September 30, 2024, FFIN's capital ratios were as follows:
| Capital Metric | Ratio |
|---|---|
| Total Capital to Risk-Weighted Assets | 19.62% |
| Tier 1 Capital to Risk-Weighted Assets | 18.50% |
| Common Equity Tier 1 Capital to Risk-Weighted Assets | 18.35% |
| Leverage Ratio | 12.53% |
Noninterest Income and Expenses
Noninterest income for the third quarter of 2024 was $32.36 million, an increase from $28.07 million in the same quarter of 2023. Total noninterest expenses amounted to $66.01 million for the third quarter of 2024.
Asset Quality
As of September 30, 2024, nonaccrual loans totaled $63.38 million, representing 0.83% of loans held-for-investment.
How First Financial Bankshares, Inc. (FFIN) Makes Money
Revenue Streams
First Financial Bankshares generates revenue through two primary sources: net interest income and noninterest income.
Net Interest Income
Net interest income is derived from the difference between interest earned on loans and investments and interest paid on deposits and borrowings.
For the third quarter of 2024, tax-equivalent net interest income was $109.74 million, compared to $96.97 million in the same period of 2023. This increase is attributed to a rise in average loans and higher rates received on loans.
| Period | Net Interest Income (Tax Equivalent) | Average Loans | Yield on Earning Assets | Cost of Deposits |
|---|---|---|---|---|
| Q3 2024 | $109.74 million | $7.64 billion | 5.09% | 1.71% |
| Q3 2023 | $96.97 million | $6.89 billion | 4.39% | 1.06% |
Loan Portfolio
As of September 30, 2024, total loans held-for-investment were $7.72 billion, an increase from $6.99 billion in 2023.
The composition of loans includes:
| Loan Type | Amount (in thousands) | Percentage of Total Loans |
|---|---|---|
| Commercial & Industrial | $1,175,774 | 15.2% |
| Municipal | $333,732 | 4.3% |
| Real Estate | $5,354,404 | 69.3% |
| Consumer | $776,012 | 10.1% |
Noninterest Income
Noninterest income for the third quarter of 2024 was $32.36 million, up from $28.07 million in the same quarter of 2023. This increase is primarily due to growth in trust fee income and debit card fees.
| Source of Noninterest Income | Q3 2024 (in thousands) | Q3 2023 (in thousands) |
|---|---|---|
| Trust Fee Income | $11,600 | $9,936 |
| Debit Card Fees | $5,530 | $5,040 |
| Mortgage Related Income | $3,360 | $3,440 |
| Total Noninterest Income | $32,360 | $28,070 |
Expenses and Profitability
First Financial Bankshares maintains a strong profitability profile. For the third quarter of 2024, net earnings were $55.31 million, marking an increase of 11.61% from $49.56 million in the third quarter of 2023.
The return on average assets was 1.66%, and the return on average equity was 14.00% for the third quarter of 2024.
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Net Earnings (in millions) | $55.31 | $49.56 |
| Return on Average Assets | 1.66% | 1.53% |
| Return on Average Equity | 14.00% | 14.51% |
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Resources:
- First Financial Bankshares, Inc. (FFIN) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of First Financial Bankshares, Inc. (FFIN)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View First Financial Bankshares, Inc. (FFIN)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.