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Dec 31, 2023
First Financial Q4 2023 Earnings Report
Reported earnings decrease compared to the same quarter a year ago, while deposit levels were maintained and loans grew organically.
Key Takeaways
First Financial Bankshares reported a decrease in earnings for Q4 2023, with net income at $45.98 million compared to $58.67 million in the same quarter of the previous year. Despite the decline, the company maintained total deposit levels and achieved organic loan growth of $706.92 million for the year. The bank also restructured its balance sheet by selling lower-yielding securities and redeploying the funds into higher-earning loans.
Earnings decreased to $45.98 million in Q4 2023 from $58.67 million in Q4 2022.
Basic and diluted earnings per share were $0.32 for Q4 2023, down from $0.41 in Q4 2022.
Maintained total deposit levels compared to the prior year-end.
Loans grew organically by $706.92 million during the year.
First Financial
First Financial
First Financial Revenue by Segment
Revenue by Segment
Trust fees Revenue
CapyFin.comService charges Revenue
CapyFin.comOther noninterest inc. Revenue
CapyFin.com Forward Guidance
The company believes it is well-positioned for success in the economic environment entering 2024.
Positive Outlook
- Cash flows from the sales of securities combined with the monthly maturities in bond and loan portfolios are providing needed liquidity to grow loans.
- Loans are yielding approximately 8%, resulting in an anticipated earn back period of less than 18 months.
- The company maintained total deposit levels when compared to 2022 year-end balances due to the addition of over 12,500 net new accounts.
- The company grew loans organically $706.92 million, or 10.97 percent, during the year while maintaining conservative credit standards.
- The company restructured its balance sheet by selling $411.13 million in securities with lower yields and redeployed those dollars into the higher earning loan portfolio.
Challenges Ahead
- A $6.53 million decrease in net interest income compared to the same quarter a year ago.
- A $964 thousand decrease in mortgage revenues compared to the same quarter a year ago.
- A $6.34 million loss on sale of securities compared to the same quarter a year ago.
- A $2.08 million increase in FDIC insurance premiums, which includes a $1.75 million special assessment compared to the same quarter a year ago.
- A $1.51 million increase in incentive and profit sharing expenses compared to the same quarter a year ago.