FIRST FINANCIAL BANKSHARES ANNOUNCES FIRST QUARTER 2024 EARNINGS

ABILENE, Texas, April 18, 2024 /PRNewswire/ -- First Financial Bankshares, Inc. (the "Company," "we," "us" or "our") (NASDAQ: FFIN) today reported earnings for the first quarter of 2024 of $53.40 million compared to earnings of $52.57 million for the same quarter a year ago. Basic and diluted earnings per share were $0.37 for both quarters ended March 31, 2024 and 2023, respectively.

As further described below, the results this quarter compared to the same quarter a year ago included (i) an increase in net interest income of $3.96 million, (ii) a decrease in provision for credit losses of $1.97 million, and (iii) an increase in trust fees of $1.53 million. Offsetting these items was an increase in salary and employee benefits expenses of $5.22 million when compared to the same period a year ago.

"Our results were highlighted by an increase in net interest income which was achieved through organic loan and deposit growth during the quarter," said F. Scott Dueser, our Chairman, President and CEO. "We are also pleased that, as our bond portfolio continues to mature, we have been able to use that cash flow to fund our organic loan growth, bolster our liquidity position and begin to repurchase securities at much higher rates. We remain financially safe, sound and secure which is reflected in our strong regulatory capital ratios, diversified deposit base and access to multiple liquidity sources. We appreciate the continued support of our customers, shareholders and associates," added Mr. Dueser.

Net interest income for the first quarter of 2024 was $100.24 million compared to $97.51 million for the fourth quarter of 2023 and $96.29 million for the first quarter of 2023. The net interest margin, on a taxable equivalent basis, was 3.34 percent in the first quarter of 2024 compared to 3.33 percent in the fourth quarter of 2023 and 3.34 percent in the first quarter of 2023. Average interest-earning assets were $12.37 billion for the first quarter of 2024 compared to $12.07 billion for the same quarter a year ago. 

The Company recorded a provision for credit losses of $808 thousand for the first quarter of 2024 compared to a provision for credit losses of $2.78 million for the first quarter of 2023. At March 31, 2024, the allowance for credit losses totaled $89.56 million, or 1.24 percent of loans held-for-investment ("loans" hereafter), compared to $80.82 million, or 1.23 percent of loans, at March 31, 2023. Additionally, the reserve for unfunded commitments totaled $7.46 million at March 31, 2024 compared to $10.40 million at March 31, 2023.

Net charge-offs totaled $428 thousand for the first quarter of 2024 compared to net recoveries of $277 thousand for the first quarter of 2023. Nonperforming assets as a percentage of loans and foreclosed assets totaled 0.51 percent at March 31, 2024, compared with 0.37 percent at March 31, 2023.  Classified loans totaled $201.59 million at March 31, 2024, compared to $157.06 million at March 31, 2023.

Noninterest income for the first quarter of 2024 was $29.38 million compared to $28.01 million for the first quarter of 2023, due to the following:

• Trust fees increased to $11.38 million for the first quarter of 2024 compared to $9.85 million for the first quarter of 2023, driven by the increase in market value of trust assets managed to $10.15 billion at March 31, 2024, compared to $9.10 billion at March 31, 2023.
• Service charges on deposits increased to $6.25 million for the first quarter of 2024 compared with $6.04 million for the first quarter of 2023, driven by the growth of over 2,000 net new accounts opened during the first quarter of 2024.
• Mortgage income increased to $3.13 million for the first quarter of 2024 compared to $2.97 million for the first quarter of 2023 due to a slight increase in mortgage loans originated.
• There were no gains on sales of assets, foreclosed assets and securities during the first quarter of 2024 compared to a gain of $976 thousand for the first quarter of 2023.

Noninterest expense for the first quarter of 2024 totaled $63.94 million compared to $57.26 million for the first quarter of 2023, as a result of the following:

• Salary, commissions, and employee benefit costs increased to $36.68 million for the first quarter of 2024, compared to $31.46 million in the first quarter of 2023 primarily resulting from merit-based and market driven pay increases, an increase of $1.65 million in profit sharing accruals, an increase of $1.29 million in medical insurance expense and an increase of $1.18 million in officer incentive accruals.
• Noninterest expenses, excluding salary related costs, increased $1.46 million for the first quarter of 2024 compared to the same period in 2023 largely due to increases in software amortization and FDIC insurance fees. An additional $440 thousand was accrued in the first quarter of 2024 for the FDIC special assessment over the Company's regular accrual.

The Company's efficiency ratio was 48.37 percent for the first quarter of 2024 compared to 44.93 percent for the first quarter of 2023. 

As of March 31, 2024, consolidated total assets were $13.19 billion compared to $13.01 billion at March 31, 2023. Loans totaled $7.23 billion at March 31, 2024, compared with loans of $6.58 billion at March 31, 2023. During the first quarter of 2024, loans grew $80.62 million, or 4.51 percent annualized, when compared to December 31, 2023 balances. Deposits totaled $11.29 billion at March 31, 2024, compared to $10.94 billion at March 31, 2023.  

Shareholders' equity was $1.49 billion as of March 31, 2024, compared to $1.50 billion and $1.37 billion at December 31, 2023, and March 31, 2023, respectively. The unrealized loss on the securities portfolio, net of applicable tax, totaled $441.23 million at March 31, 2024, compared to an unrealized loss of $403.30 million and $458.25 million at December 31, 2023 and March 31, 2023, 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, N.A., 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, N.A., 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.

SOURCE First Financial Bankshares, Inc.