FIRST FINANCIAL BANKSHARES INC [FFIN] Filings

10-Q 1 ffin-20240930.htm 10-Q 10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q


☒	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2024


☐	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission file number 0-07674

First Financial Bankshares, Inc.

(Exact name of registrant as specified in its charter)



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

400 Pine Street, Abilene, Texas		79601
(Address of principal executive offices)		(Zip Code)

(325) 627-7155

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:



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

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T(§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2of the Exchange Act.



Large accelerated filer	☒	Accelerated filer	☐

Non-accelerated filer	☐	Smaller reporting company	☐

		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule12b-2of the Act). Yes ☐ No ☒

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date:



Class		Outstanding at November 4, 2024
Common Stock, $0.01 par value per share		142,910,170

TABLE OF CONTENTS

PART I - FINANCIAL INFORMATION


Item		Page
1.	Financial Statements	3
	Consolidated Balance Sheets – Unaudited	4
	Consolidated Statements of Earnings – Unaudited	5
	Consolidated Statements of Comprehensive Earnings (Loss) – Unaudited	6
	Consolidated Statements of Shareholders’ Equity – Unaudited	7
	Consolidated Statements of Cash Flows – Unaudited	9
	Notes to Consolidated Financial Statements – Unaudited	10

2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	44

3.	Quantitative and Qualitative Disclosures About Market Risk	60

4.	Controls and Procedures	61

PART II - OTHER INFORMATION

1.	Legal Proceedings	62

1A.	Risk Factors	62

2.	Unregistered Sales of Equity Securities and Use of Proceeds	62

3.	Defaults Upon Senior Securities	62

4.	Mine Safety Disclosures	62

5.	Other Information	62

6.	Exhibits	64

	Signatures	65

PART I - FINANCIAL INFORMATION

Item 1. Financial Statements.

The consolidated balance sheets of First Financial Bankshares, Inc. and Subsidiaries (the “Company” or “we”) at September 30, 2024 and 2023 (unaudited), and December 31, 2023, and the consolidated statements of earnings, comprehensive earnings (loss) and shareholders’ equity for the three and nine-months ended September 30, 2024 and 2023 (unaudited), and the consolidated statements of cash flows for the nine-months ended September 30, 2024 and 2023 (unaudited), and notes to consolidated financial statements (unaudited), follow on pages 4 through 43.

FIRST FINANCIAL BANKSHARES, INC. AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(Dollars in thousands, except per share amounts)


	September 30,						December 31,
	2024			2023			2023
	(Unaudited)
ASSETS
CASH AND DUE FROM BANKS	$	296,188		$	208,277		$	281,354
INTEREST-BEARING DEMAND DEPOSITS IN BANKS		287,476			180,008			255,237
Total cash and cash equivalents		583,664			388,285			536,591
SECURITIES AVAILABLE-FOR-SALE, at fair value (amortized cost of these securities was $5,030,124, $5,463,186, and $5,243,681 as of September 30, 2024 and 2023, and December 31, 2023, respectively)		4,612,299			4,652,537			4,732,762
LOANS:
Held-for-investment		7,723,191			6,994,696			7,148,791
Less—allowance for credit losses		(99,936	)		(89,714	)		(88,734	)
Net loans held-for-investment		7,623,255			6,904,982			7,060,057
Held-for-sale ($16,513, $11,908, and $11,077, at fair value at September 30, 2024 and 2023, and December 31, 2023, respectively)		20,114			12,229			14,253
BANK PREMISES AND EQUIPMENT, net		151,204			152,936			151,788
INTANGIBLE ASSETS, net		314,152			314,850			314,622
OTHER ASSETS		278,244			351,599			295,521
Total assets	$	13,582,932		$	12,777,418		$	13,105,594
LIABILITIES AND SHAREHOLDERS’ EQUITY
NONINTEREST-BEARING DEPOSITS	$	3,303,143		$	3,477,553		$	3,435,586
INTEREST-BEARING DEPOSITS		8,452,718			7,238,970			7,702,714
Total deposits		11,755,861			10,716,523			11,138,300
DIVIDENDS PAYABLE		25,739			25,730			25,712
REPURCHASE AGREEMENTS		57,557			621,791			381,928
BORROWINGS		25,978			129,753			22,153
TRADE DATE PAYABLE		5,416			2,500			—
OTHER LIABILITIES		50,190			41,011			38,601
Total liabilities		11,920,741			11,537,308			11,606,694
COMMITMENTS AND CONTINGENCIES
SHAREHOLDERS’ EQUITY:
COMMON STOCK — ($0.01 par value, authorized 200,000,000 shares; 142,906,070, 142,677,069, and 142,716,939 shares issued at September 30, 2024 and 2023, and December 31, 2023, respectively)		1,429			1,427			1,427
CAPITAL SURPLUS		687,065			679,374			681,246
RETAINED EARNINGS		1,303,514			1,199,243			1,219,525
TREASURY STOCK (shares at cost: 931,423, 926,723, and 930,152 at September 30, 2024 and 2023, and December 31, 2023, respectively)		(12,653	)		(11,658	)		(11,855	)
DEFERRED COMPENSATION		12,653			11,658			11,855
ACCUMULATED OTHER COMPREHENSIVE EARNINGS (LOSS), net		(329,817	)		(639,934	)		(403,298	)
Total shareholders’ equity		1,662,191			1,240,110			1,498,900
Total liabilities and shareholders’ equity	$	13,582,932		$	12,777,418		$	13,105,594

See notes to consolidated financial statements.

FIRST FINANCIAL BANKSHARES, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF EARNINGS—(UNAUDITED)

(Dollars in thousands, except per share amounts)


	Three-Months Ended September 30,						Nine-Months Ended September 30,
	2024			2023			2024			2023
INTEREST INCOME:
Interest and fees on loans	$	129,638		$	106,377		$	370,438		$	293,453
Interest on investment securities:
Taxable		19,866			19,425			59,730			60,240
Exempt from federal income tax		7,696			8,757			23,120			28,145
Interest on federal funds sold and interest-bearing demand deposits in banks		2,758			792			9,838			4,026
Total interest income		159,958			135,351			463,126			385,864
INTEREST EXPENSE:
Interest on deposits		51,995			36,165			145,661			85,606
Interest on repurchase agreements and borrowings		854			5,037			6,841			13,957
Total interest expense		52,849			41,202			152,502			99,563
Net interest income		107,109			94,149			310,624			286,301
PROVISION FOR CREDIT LOSSES		6,123			2,276			12,817			10,631
Net interest income after provision for credit losses		100,986			91,873			297,807			275,670
NONINTEREST INCOME:
Trust fees		11,694			10,050			34,787			29,778
Service charges on deposit accounts		6,428			6,509			18,683			18,855
Debit card fees		5,528			5,041			15,564			16,697
Credit card fees		617			694			1,920			2,014
Gain on sale and fees on mortgage loans		3,359			3,442			10,174			9,950
Net gain on sale of available-for-sale securities		—			(972	)		—			(914	)
Net gain (loss) on sale of foreclosed assets		(30	)		(10	)		(88	)		23
Net gain on sale of other assets		267			696			269			1,626
Interest on loan recoveries		1,359			698			2,578			1,519
Other noninterest income		3,140			1,922			9,125			6,477
Total noninterest income		32,362			28,070			93,012			86,025
NONINTEREST EXPENSE:
Salaries, commissions and employee benefits		37,497			32,935			111,652			96,162
Net occupancy expense		3,738			3,565			10,826			10,418
Equipment expense		2,291			2,200			6,761			6,525
FDIC insurance premiums		1,514			1,573			4,987			4,644
Debit card expense		3,248			3,284			9,548			9,704
Professional and service fees		2,793			2,425			8,017			7,187
Printing, stationery and supplies		199			512			1,071			1,962
Operational and other losses		955			959			2,878			2,746
Software amortization and expense		3,712			2,441			9,875			7,271
Amortization of intangible assets		157			228			471			684
Other noninterest expense		9,908			9,417			28,879			27,104
Total noninterest expense		66,012			59,539			194,965			174,407
EARNINGS BEFORE INCOME TAXES		67,336			60,404			195,854			187,288
INCOME TAX EXPENSE		12,028			10,848			34,664			34,291
NET EARNINGS	$	55,308		$	49,556		$	161,190		$	152,997
NET EARNINGS PER SHARE, BASIC	$	0.39

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10-Q	[2017-05-02]
10-K	[2017-02-17]
10-Q	[2016-10-25]
10-Q	[2016-07-28]
10-Q	[2016-05-04]
10-K	[2016-02-19]
10-Q	[2015-10-28]
10-Q	[2015-08-04]
10-Q	[2015-05-04]
10-K	[2015-02-20]
10-Q	[2014-11-04]
10-Q	[2014-07-31]
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10-K	[2014-02-21]
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