NASDAQ$FFIN

First Financial Bankshares Inc · Q2 2022 earnings

Q2 2022 earnings · · Investor relations

Briefing

First Financial Bankshares' second quarter earnings increased compared to the same quarter last year.

First Financial Bankshares reported earnings of $60.49 million for the second quarter of 2022, an increase from $56.38 million for the same quarter a year ago. Loan growth, excluding PPP and held-for-sale loans, was $325.85 million, and deposit growth was $123.16 million.

  • Earnings were $60.49 million for the second quarter of 2022, compared to $56.38 million for the same quarter a year ago.
  • Basic and diluted earnings per share were $0.42 for the second quarter of 2022, compared with $0.40 and $0.39, respectively, for the second quarter of 2021.
  • Loan growth, excluding PPP and held-for-sale loans, was $325.85 million, or 23.5 percent annualized.
  • Deposit growth was $123.16 million, or 4.49 percent annualized, with the addition of over 6,500 net new accounts year-to-date.

Headline financials

Total Revenue

$136M

Previous: $126M+8.3%
EPS (adj)

$0.42

Previous: $0.39+7.7%
Net interest margin

3.3%

Previous: 3.4%-2.4%
Efficiency ratio

41.8%

Previous: 45.9%-8.9%
Free Cash Flow

$60.5M

Previous: $56.4M+7.3%
Net Income

$60.5M

Previous: $56.4M+7.3%
Operating Income

$124M

Previous: $119M+4.1%
Gross Profit

$131M

Previous: $124M+5.1%
Cash & Equivalents

$466M

Previous: $845M-44.9%
Total Assets

$13.3B

Previous: $12.3B+7.6%

Revenue & EPS history

First Financial · Revenue · Quarterly

$136M

Q2 2022+8.3%vs Q2 2021
Beat estimate in 6 of 16 quarters(38%)
ActualEstimate

Revenue by segment

First Financial · $21.5M total across 3 segments · Q2 2022

  • Trust fees
    $9.74M+12.1%
  • Deposit service charges
    $6.04M+22.5%
  • Mortgage loan fees
    $5.73M

Forward guidance

The company is actively monitoring changes in interest rates and the overall economic environment and is prepared for the opportunities ahead as the Texas economy continues to be strong and resilient.

Tailwinds

  • The company has been able to keep the momentum that was created from the movement of non-customers to our bank during the pandemic.
  • Outstanding growth this quarter reflected by overall loan growth, excluding PPP and held-for-sale loans.
  • Deposit growth with the addition of over 6,500 net new accounts year-to-date.
  • Texas economy continues to be strong and resilient.
  • The company appreciates the continued support of its customers, shareholders and associates.

Headwinds

  • An increase in the provision for credit losses.
  • A decrease in PPP loan origination fees.
  • A decrease in mortgage revenues.
  • Effective July 1, 2022, the Company became subject to regulations imposed by the Federal Reserve that will reduce future interchange revenue (aka. "Durbin Amendment").
  • Shareholders’ equity decreased as a result of changes in other comprehensive income (“OCI”) due to increasing interest rates over the last two quarters.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2022

Historical avgQ2 2022

+0.6%

Avg return

Earnings day

+0.8%

Avg return

5 days after

+3.7%

Avg return

30 days after

52%

36 / 69 earnings

Positive

+7.5%

Q4 2023

Best reaction

-12.7%

Q3 2022

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+4.9%-2.4%+0.8%
Q4 2025-2.8%-7.1%-1.1%
Q3 2025-2.3%-3.8%-1.5%
Q2 2025-2.9%-1.9%-1.1%
Q1 2025-1.3%+2.8%+9.7%
Q4 2024+3.4%+2.3%+0.8%
Q3 2024-0.9%-4.3%+6.7%
Q2 2024+2.0%+7.4%+1.9%
Q1 2024+4.7%+6.5%+10.9%
Q4 2023+7.5%+9.1%+4.3%
Q3 2023-6.0%-5.2%+10.9%
Q2 2023-0.8%+0.3%-4.6%
Q1 2023-5.9%-8.7%-13.8%
Q4 2022+2.0%+1.5%+13.2%
Q3 2022-12.7%-17.4%-17.7%
Q2 2022+3.1%+4.5%+11.7%
Q1 2022-3.2%-5.7%-7.4%
Q4 2021-3.9%-0.6%-0.4%
Q3 2021+3.5%+3.5%+8.0%
Q2 2021-1.6%-1.8%-0.3%
Q1 2021+3.2%+6.2%+7.0%
Q4 2020-5.0%-1.1%+12.0%
Q3 2020+2.5%+0.0%+11.2%
Q2 2020+5.7%+2.5%+5.7%
Q1 2020+3.7%+11.5%+12.1%
Q4 2019+1.3%+1.3%-0.3%
Q3 2019+4.6%+6.1%+3.2%
Q2 2019+4.1%+7.0%+5.1%
Q1 2019-1.3%+0.3%+0.5%
Q4 2018-1.3%-0.3%+2.4%
Q3 2018-1.2%-4.6%+13.8%
Q2 2018+6.1%+9.0%+13.1%
Q1 2018+3.1%+5.1%+9.7%
Q4 2017-0.4%+0.3%+0.9%
Q3 2017+1.7%+0.9%-3.3%
Q2 2017+0.5%+3.3%-7.0%
Q1 2017+4.9%+8.5%+1.9%
Q4 2016-0.9%-1.2%+3.8%
Q3 2016-2.3%-1.4%+22.2%
Q2 2016-0.1%-0.0%+2.1%
Q1 2016-0.3%
Q4 2015-1.7%
Q3 2015+4.3%
Q2 2015-0.1%
Q1 2015+0.3%
Q4 2014+5.0%
Q3 2014+2.6%
Q2 2014-1.2%
Q1 2014+1.9%
Q4 2012+2.6%
Q4 2011+2.6%
Q4 2013-1.9%
Q3 2013+0.7%
Q2 2013+2.3%
Q1 2013+2.2%
Q3 2012+0.3%
Q2 2012+0.0%
Q1 2012+1.7%
Q4 2010-0.2%
Q3 2011-0.5%
Q2 2011-0.3%
Q1 2010-2.6%
Q1 2011+1.1%
Q4 2008+2.7%
Q3 2010+3.7%
Q3 2009+3.7%
Q2 2010-1.9%
Q2 2009-1.9%
Q4 2009-1.9%

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