NASDAQ$FFIN

First Financial Bankshares Inc · Q2 2023 earnings

Q2 2023 earnings · · Investor relations

Briefing

Reported earnings decrease of $50.87 million for the second quarter of 2023.

First Financial Bankshares reported earnings of $50.87 million for the second quarter of 2023, a decrease compared to $60.49 million for the same quarter a year ago. The results were impacted by decreases in net interest income, debit card fees, mortgage revenues, gains on sale of securities, and interest recoveries on charged off loans, partially offset by a decrease in profit sharing expense. However, the company saw strong loan growth, a consistent deposit base, and growth in net new accounts.

  • Earnings decreased to $50.87 million for the second quarter of 2023, compared to $60.49 million in the same quarter of the previous year.
  • Basic and diluted earnings per share were $0.36 for the second quarter of 2023, down from $0.42 in the second quarter of 2022.
  • Net interest income decreased to $95.87 million for the second quarter of 2023, compared to $98.78 million for the same period last year.
  • Noninterest income decreased to $29.95 million compared to $37.32 million for the second quarter of 2022.

Headline financials

Total Revenue

$126M

Previous: $136M-7.6%
EPS (adj)

$0.36

Previous: $0.42-14.3%
Net interest margin

3.3%

Previous: 3.3%+0.3%
Efficiency ratio

44.7%

Previous: 41.8%+7.0%
ROA

1.6%

No prior period
ROE

14.9%

No prior period
Return on tangible equity

19.3%

No prior period
Loan loss reserve / loans

1.3%

No prior period
Free Cash Flow

$50.9M

Previous: $60.5M-15.9%
Net Income

$50.9M

Previous: $60.5M-15.9%
Operating Income

$83M

Previous: $124M-32.9%
Gross Profit

$120M

Previous: $131M-8.0%
Cash & Equivalents

$279M

Previous: $466M-40.1%
Total Assets

$12.8B

Previous: $13.3B-3.3%
Stock-Based Comp

$1.03M

No prior period

Revenue & EPS history

First Financial · Revenue · Quarterly

$126M

Q2 2023-7.6%vs Q2 2022
Beat estimate in 4 of 15 quarters(27%)
ActualEstimate

Revenue by segment

First Financial · $29.4M total across 6 segments · Q2 2023

  • Trust fees
    $9.88M+1.4%
  • Debit card fees
    $6.72M
  • Deposit service charges
    $6.31M+4.5%
  • Mortgage loan fees
    $3.53M-38.3%
  • Other noninterest income
    $2.27M
  • Credit card fees
    $711K

Forward guidance

The Company plans to continue to grow loans and deposits, maintain its strong capital position, manage interest rate risk and reduce expenses.

Tailwinds

  • Continue to grow loans
  • Continue to grow deposits
  • Maintain strong capital position
  • Manage interest rate risk
  • Reduce expenses

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 2023

Historical avgQ2 2023

+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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