NASDAQ$FFIN

First Financial Bankshares Inc · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Reported earnings for the third quarter of 2023.

First Financial Bankshares reported earnings of $49.56 million for the third quarter of 2023, a decrease compared to the previous quarter and the same quarter last year. Diluted earnings per share were $0.35, also lower than the previous quarter and the prior year. The company's net interest income was $94.15 million, and the net interest margin was 3.22 percent.

  • Earnings were $49.56 million for the third quarter of 2023, compared to $50.87 million for the second quarter of 2023 and $59.34 million for the same quarter a year ago.
  • Diluted earnings per share were $0.35 for the third quarter of 2023, compared with $0.36 for the second quarter of 2023 and $0.41 for the third quarter of 2022.
  • Net interest income for the third quarter of 2023 was $94.15 million compared to $95.87 million in the second quarter of 2023 and $103.16 million for the third quarter of 2022.
  • Loans totaled $6.99 billion at September 30, 2023, compared with loans of $6.26 billion at September 30, 2022.

Headline financials

Total Revenue

$122M

Previous: $134M-8.9%
EPS (adj)

$0.35

Previous: $0.41-14.6%
Net interest margin

3.2%

Previous: 3.3%-3.0%
Efficiency ratio

47.6%

Previous: 43.8%+8.8%
Free Cash Flow

$49.6M

Previous: $59.3M-16.5%
Net Income

$49.6M

Previous: $59.3M-16.5%
Operating Income

$75.3M

Previous: $118M-36.1%
Gross Profit

$120M

Previous: $131M-8.4%
Cash & Equivalents

$388M

Previous: $366M+6.2%
Total Assets

$12.8B

Previous: $13.1B-2.5%
Stock-Based Comp

$1.05M

Previous: $2.67M-60.8%

Revenue & EPS history

First Financial · Revenue · Quarterly

$122M

Q3 2023-8.9%vs Q3 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

Management is focused on disciplined balance sheet management, expense reduction, and maximizing efficiencies. Monthly maturities from bond and loan portfolios are expected to provide liquidity for loan growth, which should improve interest income.

Tailwinds

  • Strong liquidity position.
  • Healthy capital levels.
  • Ability to attract loan and deposit customers at favorable terms.
  • Stable deposit balances with continued net new account growth.
  • Loan growth expected to improve interest income.

Headwinds

  • Some banks do not have the liquidity to serve their loan customers
  • Managing our balance sheet in a disciplined manner
  • Reducing expenses and maximizing efficiencies
  • Monthly maturities off our bond and loan portfolios are providing us with the needed liquidity to grow loans which will improve our interest income as we go forward.
  • Appreciating the continued support of our customers, shareholders, and associates

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 Q3 2023

Historical avgQ3 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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