ABILENE, Texas - First Financial Bankshares , Inc. (NASDAQ:FFIN) announced the renewal of its stock repurchase plan, under which the company may buy back up to 5,000,000 shares of its common stock. This amount represents about 3.5% of its outstanding shares as of July 23, 2024. The new repurchase authorization is set to run through July 31, 2025, following the expiration of the previous authorization on July 31, 2024.
The repurchases, which are subject to market conditions and regulatory requirements, can be made on the open market, in block trades, or through privately negotiated transactions. The company has stated there is no obligation to repurchase a minimum number of shares.
F. Scott Dueser, Chairman, CEO, and President of First Financial, remarked on the strength of the company's capital position and expressed that the repurchase plan aligns with the interests of shareholders, especially when the company's share price is deemed attractive. The board's decision to renew the plan reflects their confidence in the company's future prospects.
First Financial Bankshares, Inc., headquartered in Abilene, Texas, is a financial holding corporation that operates through its subsidiary, First Financial Bank. The bank has 79 locations across Texas and also runs First Financial Trust & Asset Management Company and First Technology Services, Inc.
While the company's management believes in the positive outlook for First Financial, they also caution that forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially. These include competitive forces, changes in economic conditions, and fluctuations in the financial markets.
In other recent news, First Financial Bankshares reported strong Q2 results, leading Stephens to raise the stock's price target from $31 to $36. The bank's net interest income trends were notable, thanks to higher loan yields and decreasing funding cost pressures. First Financial also saw a 16% increase in loan growth compared to the previous quarter, which, along with a rise in originations, puts the company in a good position to meet its growth goal for 2024.
Despite a 9% increase in classified loans, First Financial remains in a strong position for potential mergers and acquisitions, as indicated by its substantial capital reserves and premium stock valuation. Stephens also noted several regional deals that could prove beneficial for the bank's M&A prospects, particularly in 2025.
On the other hand, Truist Securities revised its price target for First Financial Bankshares down to $32 from $34, based on reevaluated earnings per share forecasts for 2024 and 2025. The firm anticipates a rise in net interest income through 2025, supported by expected loan growth funded by securities cash flows.
In addition to these financial developments, First Financial Bankshares recently welcomed Sally Pope Davis to its Board of Directors. Davis, who retired from Goldman Sachs, brings over thirty years of financial sector experience to the board. These are some of the recent developments concerning First Financial Bankshares.
InvestingPro Insights
First Financial Bankshares, Inc. (NASDAQ:FFIN) has recently affirmed its commitment to enhancing shareholder value with the renewal of its stock repurchase plan. To provide additional context to investors considering this development, a look at some key metrics and InvestingPro Tips can offer a more comprehensive understanding of the company's financial health and market position.
InvestingPro Data shows that First Financial has a market capitalization of $5.54 billion and a price-to-earnings (P/E) ratio of 27.46, which is relatively stable when adjusted for the last twelve months as of Q2 2024, at 27.32. These figures suggest a solid market valuation relative to earnings. Additionally, the company has demonstrated a strong performance in the stock market, with a one-week price total return of 7.71% and a remarkable one-month price total return of 34.5%.
In line with the company's strategy to buy back shares, two InvestingPro Tips highlight the firm's financial prudence and potential for future growth. First Financial has maintained dividend payments for an impressive 32 consecutive years, indicating a stable and reliable income stream for investors. Furthermore, 5 analysts have revised their earnings upwards for the upcoming period, suggesting a positive outlook on the company's profitability.
For those looking to delve deeper into the financial analysis of First Financial Bankshares, additional InvestingPro Tips can be accessed at https://www.investing.com/pro/FFIN. There are 10 more tips available that provide insights into aspects such as the company's gross profit margins, trading positions, and analyst predictions for profitability.
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