FFIN's 2023 10-K Details Asset Health & Fair Value

TL;DR

**FFIN's 2023 10-K shows a stable loan book with 'Pass' ratings on key commercial segments.**

AI Summary

FIRST FINANCIAL BANKSHARES INC (FFIN) filed its 10-K on February 26, 2024, for the fiscal year ended December 31, 2023. The filing details financial information, including various asset classifications and fair value measurements. For instance, as of December 31, 2023, the company reported 'Pass' rated Commercial and Industrial (C&I) loans and 'Pass' rated non-owner occupied Commercial Real Estate (CRE) loans, alongside specific fair value inputs for financial assets.

Why It Matters

This filing provides crucial transparency into FFIN's financial health, particularly its loan portfolio quality and asset valuations, which directly impacts investor confidence and future performance.

Risk Assessment

Risk Level: medium — While key loan segments are rated 'Pass', the presence of 'Substandard' C&I loans and 'Financing Receivables Equal To Greater Than 90 Days Past Due' in Construction and Development CRE indicates some credit risk.

Key Numbers

• 2023-12-31 — Conformed Period of Report (Indicates the fiscal year-end covered by the 10-K filing.)
• 0000036029 — Central Index Key (CIK) (Unique identifier for FIRST FINANCIAL BANKSHARES INC with the SEC.)
• 6022 — Standard Industrial Classification (SIC) (Identifies the company as a State Commercial Bank.)
• 750944023 — IRS Number (Tax identification number for the company.)
• 000-07674 — SEC File Number (Specific file number for the company's SEC filings.)

Key Players & Entities

• FIRST FINANCIAL BANKSHARES INC (company) — filer
• FFIN (company) — ticker symbol
• December 31, 2023 (date) — fiscal year end
• February 26, 2024 (date) — filing date
• Abilene, TX (company) — business address city and state

FAQ

Key Financial Figures

• $0.01 — ch registered Common Stock, par value $0.01 per share FFIN The Nasdaq Global Se
• $1.57 billion — nd have increased our total assets from $1.57 billion to $13.11 billion as of December 31, 20
• $13.11 billion — our total assets from $1.57 billion to $13.11 billion as of December 31, 2023. Looking ahead,
• $500 million — Texas Hill Country area. Banks between $500 million and $3.0 billion in asset size fit our
• $3.0 billion — ry area. Banks between $500 million and $3.0 billion in asset size fit our "sweet spot" for
• $19.19 million — ncurred expenses totaling approximately $19.19 million and $22.42 million, respectively, for t
• $22.42 m — taling approximately $19.19 million and $22.42 million, respectively, for these benefits

Filing Documents

• ffin-20231231.htm (10-K) — 8198KB
• ffin-ex4_2.htm (EX-4.2) — 30KB
• ffin-ex21_1.htm (EX-21.1) — 27KB
• ffin-ex23_1.htm (EX-23.1) — 7KB
• ffin-ex31_1.htm (EX-31.1) — 13KB
• ffin-ex31_2.htm (EX-31.2) — 13KB
• ffin-ex32_1.htm (EX-32.1) — 11KB
• ffin-ex32_2.htm (EX-32.2) — 11KB
• img264097958_0.jpg (GRAPHIC) — 182KB
• 0000950170-24-019528.txt ( ) — 32744KB
• ffin-20231231.xsd (EX-101.SCH) — 2230KB
• ffin-20231231_htm.xml (XML) — 9478KB

Business

Business 3 ITEM 1A.

Risk Factors

Risk Factors 15 ITEM 1B. Unresolved Staff Comments 28 ITEM 1C. Cybersecurity 29 ITEM 2.

Properties

Properties 30 ITEM 3.

Legal Proceedings

Legal Proceedings 30 ITEM 4. Mine Safety Disclosures 30 30 PART II ITEM 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 31 ITEM 6. [Reserved] 33 ITEM 7.

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 34 ITEM 7A.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 52 ITEM 8.

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 52 ITEM 9. Changes in and Disagreements with Accountants on Accounting and Financial Disclosure 54 ITEM 9A.

Controls and Procedures

Controls and Procedures 54 ITEM 9B. Other Information 56 ITEM 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 56 PART III ITEM 10. Directors, Executive Officers and Corporate Governance 57 ITEM 11.

Executive Compensation

Executive Compensation 57 ITEM 12.

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters 57 ITEM 13. Certain Relationships and Related Transactions, and Director Independence 57 ITEM 14. Principal Accountant Fees and Services 57 PART IV ITEM 15. Exhibit and Financial Statement Schedules 58 ITEM 16. Form 10-K Summary 60

SIGNATURES

SIGNATURES 61 i Table of Contents PART I CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS This Form 10-K contains certain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. When used in this Form 10-K, words such as "anticipate," "believe," "estimate," "expect," "intend," "predict," "project," "could," "may," or "would" and similar expressions, as they relate to us or our management, identify forward-looking statements. These forward-looking statements are based on information currently available to our management. Actual results could differ materially from those contemplated by the forward-looking statements as a result of certain factors, including, but not limited, to those listed in "Item 1A-Risk Factors" and the following: general economic conditions, including our local, state and national real estate markets and employment trends; the effects of and changes in trade, monetary and fiscal policies and laws, including interest rate policies of the Board of Governors of the Federal Reserve System (the "Federal Reserve Board"); effect of severe weather conditions, including hurricanes, tornadoes, flooding and droughts; volatility and disruption in national and international financial and commodity markets; government intervention in the U.S. financial system including the effects of recent legislative, tax, accounting and regulatory actions and reforms, including the Coronavirus Aid, Relief, and Economic Security Act (the "CARES Act"), the Dodd-Frank Wall Street Reform and Consumer Protection Act (the "Dodd-Frank Act"), the Jumpstart Our Business Startups Act, the Consumer Financial Protection Bureau ("CFPB"), the Inflation Reduction Act of 2022, the capital ratios of Basel III as adopted by the federal banking authorities and the Tax Cuts and Jobs Act; political or social unrest and economic instability; the ability of the federal go

BUSINESS

BUSINESS General First Financial Bankshares, Inc., a Texas corporation (the "Company"), is a financial holding company registered under the Bank Holding Company Act of 1956, as amended, or BHCA. As such, we are supervised by the Federal Reserve Board, as well as several other bank regulators. We were formed as a bank holding company in 1956 under the original name F & M Operating Company, but our banking operations date back to 1890, when Farmers and Merchants National Bank opened for business in Abilene, Texas. As of December 31, 2023, our wholly-owned subsidiaries, all of which are headquartered in Abilene, Texas, were: First Financial Bank, N.A.; First Technology Services, Inc., a wholly-owned subsidiary of First Financial Bank, N.A.; FFB Investment Paris Fund, LLC, a wholly-owned subsidiary of First Financial Bank, N.A.; FFB Portfolio Management, Inc., a wholly-owned subsidiary of First Financial Bank, N.A.; First Financial Trust & Asset Management Company, N.A.; and First Financial Insurance Agency, Inc. Through our subsidiaries, we conduct a full-service commercial banking business. Our banking centers are located primarily in Central, North Central, Southeast and West Texas. As of December 31, 2023, we had 79 financial centers across Texas, with ten locations in Abilene, five locations in Bryan/College Station, three locations in Weatherford, two locations in Cleburne, Conroe, San Angelo, Stephenville, and Granbury, and one location each in Acton, Albany, Aledo, Alvarado, Beaumont, Boyd, Bridgeport, Brock, Burleson, Cisco, Clyde, Cut and Shoot, Decatur, Eastland, El Campo, Fort Worth, Franklin, Fulshear, Glen Rose, Grapevine, Hereford, Huntsville, Keller, Kingwood, Lumberton, Magnolia, Mauriceville, Merkel, Midlothian, Mineral Wells, Montgomery, Moran, New Waverly, Newton, Odessa, Orange, Palacios, Port Arthur, Ranger, Rising Star, Roby, Southlake, Spring, Sweetwater, Tomball, Trent, Trophy Club, Vidor, Waxahachie, Willis and Willow Park. Ad

View Full Filing

View this 10-K filing on SEC EDGAR