Sign in Subscribe
Banking industry

First Financial Bankshares Reports Strong Second Quarter Earnings

Strategic Insights

— 2 min read

Abilene, Texas-based First Financial Bankshares, Inc. reported earnings of $52.49 million for the second quarter of 2024, a 3.6% increase from the same quarter a year ago. The increase in earnings was driven by strong loan growth and net interest margin expansion, resulting in increased net interest income for the quarter. The company's Chairman, CEO, and President, F. Scott Dueser, expressed optimism about the company's outlook for the remainder of the year, citing a positive asset mix and strategies to grow deposits.

Key Takeaways:

  • Net interest income for the second quarter of 2024 was $103.27 million, a 8.1% increase from the same quarter a year ago, and a 3.3% increase from the first quarter of 2024.
  • The net interest margin, on a taxable equivalent basis, was 3.48% for the second quarter of 2024, a 190 basis point increase from the same quarter a year ago.
  • Average interest-earning assets were $12.23 billion for the second quarter of 2024, a 2.3% increase from the same quarter a year ago.
  • Nonperforming assets as a percentage of loans and foreclosed assets totaled 0.81% at June 30, 2024, a 139 basis point increase from June 30, 2023.
  • Classified loans totaled $219.26 million at June 30, 2024, a 25.4% increase from June 30, 2023.
  • Noninterest income for the second quarter of 2024 was $31.27 million, a 4.5% increase from the same quarter a year ago.
  • Notable changes in noninterest income include:

+ Trust fee income increased $1.83 million from the second quarter 2023 and $335 thousand from the first quarter 2024.

+ Debit card fees decreased by $1.58 million for the second quarter of 2024 from the prior year due to annual incentives.

+ Mortgage income increased to $3.69 million compared to $3.53 million for the second quarter of 2023 and $3.13 million in the first quarter of 2024.

  • Noninterest expense for the second quarter of 2024 totaled $65.01 million, a 12.9% increase from the second quarter of 2023.
  • Notable changes in noninterest expense include:

+ Salary, commissions, and employee benefit costs increased to $37.47 million for the second quarter of 2024.

+ Noninterest expenses, excluding salary related costs, increased $1.69 million for the second quarter of 2024 compared to the same period in 2023.

Statistics:

  • Net interest income: $103.27 million (Q2 2024), $95.87 million (Q2 2023), $100.24 million (Q1 2024)
  • Net interest margin: 3.48% (Q2 2024), 3.29% (Q2 2023), 3.34% (Q1 2024)
  • Average interest-earning assets: $12.23 billion (Q2 2024), $12.05 billion (Q2 2023)
  • Nonperforming assets as a percentage of loans and foreclosed assets: 0.81% (June 30, 2024), 0.43% (June 30, 2023)
  • Classified loans: $219.26 million (June 30, 2024), $175.14 million (June 30, 2023)
  • Noninterest income: $31.27 million (Q2 2024), $29.95 million (Q2 2023), $29.38 million (Q1 2024)
  • Noninterest expense: $65.01 million (Q2 2024), $57.61 million (Q2 2023), $63.94 million (Q1 2024)
  • Efficiency ratio: 47.41% (Q2 2024), 44.74% (Q2 2023), 48.37% (Q1 2024)
  • Shareholders' equity: $1.52 billion (June 30, 2024), $1.37 billion (June 30, 2023), $1.50 billion (December 31, 2023)

Sources:

  • First Financial Bankshares, Inc. (2024). Second Quarter 2024 Earnings Release.
  • "We are pleased with the second quarter results that are highlighted by strong loan growth and net interest margin expansion which resulted in increased net interest income for the quarter," said F. Scott Dueser, Chairman, CEO and President of First Financial Bankshares, Inc.

Read more