First Financial Bankshares Inc (FFIN) Q3 2023 Earnings: Net Income Drops to $49.56 Million
Third-quarter earnings of $49.56 million, down from $59.34 million in the same quarter last year.
Diluted earnings per share were $0.35, compared to $0.41 for the third quarter of 2022.
Net interest income for the third quarter of 2023 was $94.15 million, down from $103.16 million in the third quarter of 2022.
Noninterest income for the third quarter of 2023 was $28.07 million, down from $30.94 million for the third quarter of 2022.
First Financial Bankshares Inc (NASDAQ:FFIN) reported its third-quarter earnings for 2023 on October 20, 2023. The company reported a net income of $49.56 million, a decrease from $59.34 million in the same quarter a year ago. Diluted earnings per share were $0.35, compared to $0.41 for the third quarter of 2022.
Financial Highlights
Net interest income for the third quarter of 2023 was $94.15 million, down from $103.16 million in the third quarter of 2022. The net interest margin was 3.22 percent for the third quarter of 2023, compared to 3.38 percent in the third quarter of 2022.
The company recorded a provision for credit losses of $2.28 million for the third quarter of 2023, compared to a provision for credit losses of $3.22 million for the third quarter of 2022. Noninterest income for the third quarter of 2023 was $28.07 million, down from $30.94 million for the third quarter of 2022.
Company's Commentary
Due to our strong liquidity, capital levels and some banks who dont have the liquidity to serve their loan customers, we have had the ability to add good loan and deposit customers at favorable terms in the current environment," said F. Scott Dueser, Chairman, CEO and President of First Financial Bankshares, Inc. "We are encouraged that deposit balances have remained fairly stable this year and we continue to have significant net new account growth."
Balance Sheet and Capital Management
As of September 30, 2023, consolidated total assets were $12.78 billion compared to $13.11 billion at September 30, 2022. Loans totaled $6.99 billion at September 30, 2023, compared with loans of $6.26 billion at September 30, 2022. Deposits totaled $10.72 billion at September 30, 2023, compared to $11.14 billion at September 30, 2022.
Shareholders equity was $1.24 billion as of September 30, 2023, compared to $1.37 billion and $1.13 billion at June 30, 2023, and September 30, 2022, respectively. The company repurchased 101,337 shares of its common stock at an average price of $26.99 during the third quarter of 2023.
Looking Ahead
Despite the decrease in earnings, First Financial Bankshares Inc (NASDAQ:FFIN) remains optimistic about its future growth. The company plans to continue its disciplined approach of managing its balance sheet, reducing expenses, and maximizing efficiencies.
This article first appeared on GuruFocus.
