Overview

• US regional bank's Q2 net income and EPS grew yr/yr

• Net interest income and margin rose from prior year, helped by lower deposit costs

• Noninterest income increased, driven by wealth management and mortgage banking fees

Outlook

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

Result Drivers

• LOWER DEPOSIT COSTS AND HIGHER SECURITIES YIELDS - Co said net interest income and margin benefited from a decrease in deposit costs and improved securities yields

• WEALTH MANAGEMENT AND MORTGAGE FEES - Co said increases in wealth management and mortgage banking fee income contributed to noninterest income growth

• HIGHER SALARY AND SOFTWARE COSTS - Co said noninterest expense rose due to merit-based and market-driven pay increases, profit sharing, and higher software amortization and professional fees

Company press release: ID:nPn3n160ra

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", 4 "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 $35.00, about 0.6% below its July 15 closing price of $35.22

• The stock recently traded at 17 times the next 12-month earnings vs. a P/E of 15 three months ago

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