First Financial Bankshares Q3 net income jumps on net interest margin expansion 

Overview

• US regional bank's Q3 net income and EPS rose year-over-year

• Credit loss provision fell sharply from prior year, which saw a large fraud-related charge-off

Outlook

• Company did not provide specific financial guidance for the current or future periods

Result Drivers

• NET INTEREST MARGIN EXPANSION - Co said record net income was largely driven by continued expansion of net interest margin

• WEALTH MANAGEMENT FEES - Growth in new accounts and higher mineral fee income linked to oil and gas prices boosted wealth management fee income

• MORTGAGE INCOME DECLINE - Mortgage income fell as volume and margins were impacted by spike in long term rates

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 5 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the banks peer group is "buy."

• Wall Street's median 12-month price target for First Financial Bankshares Inc is $36.00, about 16.5% above its October 14 closing price of $30.89

• The stock recently traded at 14 times the next 12-month earnings vs. a P/E of 17 three months ago

Reuters Recommended Reads

• Oct 14 - US banks post solid third-quarter loan growth, but face more competition for deposits

• Oct 14 - Home BancShares Q3 revenue rises on net interest income strength

• Oct 14 - Equity Bancshares Q3 core EPS rises on loan growth, lifts dividend

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)