First Financial Bankshares ( (FFIN) ) has released its Q4 earnings. Here is a breakdown of the information First Financial Bankshares presented to its investors.
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First Financial Bankshares, Inc., headquartered in Abilene, Texas, is a financial holding company primarily engaged in providing banking services through its subsidiary, First Financial Bank, which operates 79 locations across Texas. The company also operates First Financial Trust and Asset Management Company and First Technology Services, Inc.
In its latest earnings report for the fourth quarter and full year ending December 31, 2024, First Financial Bankshares announced a significant increase in net income, reporting $62.32 million for the fourth quarter, compared to $55.31 million in the previous quarter and $45.98 million in the same quarter last year. For the full year 2024, the company achieved a net income of $223.51 million, marking a 12.33% increase from 2023.
Key financial performance metrics for the fourth quarter include a net interest income of $116.12 million, up from $107.11 million in the third quarter, and a net interest margin increase to 3.67%. The provision for credit losses was significantly reduced to $1.00 million from $6.12 million in the previous quarter. Noninterest income saw a slight decline compared to the third quarter but was higher than the previous year, driven by increases in trust fee income and mortgage income. The company’s efficiency ratio improved to 46.81% from 51.97% in the same quarter last year, attributed to increased net interest income and reduced losses from securities sales.
First Financial Bankshares experienced robust growth in loans and deposits, with loans totaling $7.91 billion at the end of 2024, up from $7.15 billion at the end of 2023. Deposits and repurchase agreements also saw an increase, reaching $12.16 billion. Despite an increase in allowances for credit losses, nonperforming assets as a percentage of loans and foreclosed assets slightly improved to 0.80% from 0.83% in the previous quarter.
Looking ahead, First Financial Bankshares’ management remains optimistic about sustaining growth in 2025, focusing on maintaining their momentum and adhering to fundamental banking practices. The company aims to navigate the current interest rate and economic environment effectively, with continued support from customers, shareholders, and associates.
