FIRST FINANCIAL BANKSHARES ANNOUNCES FIRST QUARTER 2026 EARNINGS

Apr 16 2026 21:05 BST

ABILENE, Texas , April 16, 2026 /PRNewswire/ -- First Financial Bankshares, Inc. (the "Company," "we," "us" or "our") (NASDAQ: FFIN) today reported earnings for the first quarter of 2026 of $71.54 million compared to earnings of $73.31 million for the fourth quarter of 2025 and $61.35 million for the same quarter a year ago. Basic and diluted earnings per share were $0.50 for the quarter ended March 31, 2026 compared to $0.51 for the quarter ended December 31, 2025 and $0.43 for the quarter ended March 31, 2025.

"We are pleased to start 2026 with a strong increase in net income of 16.6 percent year over year, primarily due to our core balance sheet growth and decreased funding costs over the past year," said David Bailey, President and CEO. "While the current macro environment is uncertain with the ongoing Iran conflict, our Company remains financially strong, sound and secure as reflected in our strong capital levels, diversified core deposit base, and sound lending practices. We appreciate our associates who work hard every day to build new customer relationships while providing exceptional service," added Mr. Bailey.

Net interest income for the first quarter of 2026 was $134.79 million compared to $131.37 million for the fourth quarter of 2025 and $118.79 million for the first quarter of 2025. The net interest margin, on a tax-equivalent basis, was 3.86 percent for the first quarter of 2026 compared to 3.81 percent for the fourth quarter of 2025 and 3.74 percent for the first quarter of 2025. Net interest income was affected by a $1.26 million reversal of interest expense, improving the core margin by about 3 basis points. Average interest-earning assets were $14.54 billion for the first quarter of 2026 compared to $14.08 billion for the fourth quarter of 2025 and $13.16 billion for the same quarter a year ago.

The Company recorded a provision for credit losses of $2.29 million for the first quarter of 2026 compared to a provision reversal of $2.49 million for the fourth quarter of 2025 and a provision for credit losses of $3.53 million for the first quarter of 2025.

At March 31, 2026, the allowance for credit losses totaled $107.92 million, or 1.30 percent of loans held-for-investment ("loans" hereafter), compared to $105.54 million, or 1.29 percent of loans, at December 31, 2025 and $101.08 million, or 1.27 percent of loans, at March 31, 2025.

Net charge-offs totaled $356 thousand for the first quarter of 2026 compared to net charge-offs of $391 thousand for the fourth quarter of 2025 and $236 thousand for the first quarter of 2025. Nonperforming assets as a percentage of loans and foreclosed assets decreased to 0.66 percent at March 31, 2026, compared with 0.69 percent at December 31, 2025 and 0.78 percent at March 31, 2025.

Noninterest income for the first quarter of 2026 was $32.10 million compared to $30.23 million for the first quarter of 2025.

Trust fees increased to $13.36 million for the first quarter of 2026 compared to $12.65 million for the first quarter of 2025, driven by the increase in market value of trust assets managed to $11.91 billion at March 31, 2026, compared to $10.86 billion at March 31, 2025.
Service charges on deposits decreased to $6.08 million for the first quarter of 2026 compared with $6.18 million for the first quarter of 2025, driven by a decrease in overdraft fees.
Mortgage income increased to $4.28 million for the first quarter of 2026 compared to $2.83 million for the first quarter of 2025, due to increased volume in mortgage loans originated and better margins.

Noninterest expense for the first quarter of 2026 totaled $76.77 million compared to $70.34 million for the first quarter of 2025.

Salary, commissions, and employee benefit costs increased to $45.98 million for the first quarter of 2026, compared to $42.14 million in the first quarter of 2025, primarily resulting from additions to staff and merit-based and market driven pay increases to officers and employees over the past year.
Noninterest expenses, excluding salary related costs, increased $2.59 million for the first quarter of 2026 compared to the same period in 2025, largely due to increases in software amortization, professional fees and operational and other losses.

The Company's efficiency ratio was 44.98 percent for the first quarter of 2026 compared to 46.36 percent for the first quarter of 2025.

As of March 31, 2026, consolidated total assets were $15.39 billion compared to $15.45 billion at December 31, 2025, and $14.31 billion at March 31, 2025. Loans totaled $8.29 billion at March 31, 2026, compared with $8.16 billion at December 31, 2025 and $7.95 billion at March 31, 2025. Loans grew $126.84 million or 6.31 percent annualized from 2025 year end balances. Deposits and Repurchase Agreements totaled $13.31 billion at March 31, 2026 compared to $13.41 billion at December 31, 2025 and $12.52 billion at March 31, 2025. Core deposits grew during the quarter but were offset by declines in public fund balances.

Shareholders' equity was $1.94 billion as of March 31, 2026, compared to $1.92 billion and $1.68 billion at December 31, 2025 and March 31, 2025, respectively. The unrealized loss on the securities portfolio, net of applicable tax, totaled $290.06 million at March 31, 2026, compared to an unrealized loss of $269.94 million and $388.89 million at December 31, 2025 and March 31, 2025, respectively, due to the changes in market interest rates during the respective periods.

About First Financial Bankshares, Inc.

Headquartered in Abilene, Texas, First Financial Bankshares, Inc. is a financial holding company that through its subsidiary, First Financial Bank, operates multiple banking regions with 79 locations in Texas, including Abilene, Acton, Albany, Aledo, Alvarado, Beaumont, Boyd, Bridgeport, Brock, Bryan, Burleson, College Station, Cisco, Cleburne, Clyde, Conroe, Cut and Shoot, Decatur, Eastland, El Campo, Fort Worth, Franklin, Fulshear, Glen Rose, Granbury, 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, San Angelo, Southlake, Spring, Stephenville, Sweetwater, Tomball, Trent, Trophy Club, Vidor, Waxahachie, Weatherford, Willis, and Willow Park. The Company also operates First Financial Trust & Asset Management Company, with nine locations and First Technology Services, Inc., a technology operating company.

The Company is listed on The Nasdaq Global Select Market under the trading symbol FFIN. For more information about First Financial, please visit our website at https://www.ffin.com.

Certain statements contained herein may be considered "forward-looking statements" as defined in the Private Securities Litigation Reform Act of 1995. These statements are based upon the belief of the Company's management, as well as assumptions made beyond information currently available to the Company's management, and may be, but not necessarily are, identified by such words as "expect," "plan," "anticipate," "target," "forecast," "project," and "goal." Because such "forward-looking statements" are subject to risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially from the Company's expectations include competition from other financial institutions and financial holding companies; the effects of and changes in trade, monetary and fiscal policies and laws, including interest rate policies of the Federal Reserve Board; economic impact of oil and gas prices, changes in the demand for loans; fluctuations in value of collateral and loan reserves; inflation, interest rate, market and monetary fluctuations; changes in consumer spending, borrowing and savings habits; and acquisitions and integration of acquired businesses, and similar variables. Other key risks are described in the Company's reports filed with the Securities and Exchange Commission, which may be obtained under "Investor Relations-Documents and Filings" on the Company's Website or by writing or calling the Company at 325.627.7155. Except as otherwise stated in this news announcement, the Company does not undertake any obligation to update publicly or revise any forward-looking statements because of new information, future events or otherwise.

FIRST FINANCIAL BANKSHARES, INC.
CONSOLIDATED FINANCIAL SUMMARY (UNAUDITED)
(In thousands, except share and per share data)

	As of
		2026			2025
ASSETS		Mar. 31			Dec. 31,			Sept. 30,			June 30,			Mar. 31,
Cash and due from banks	$	264,850		$	249,466		$	237,466		$	264,000		$	232,943
Interest-bearing demand deposits in banks		458,203			826,947			401,580			435,612			682,362
Federal funds sold		14,075			1,575			11,750			8,750			11,750
Investment securities		5,668,792			5,514,113			5,260,813			4,886,548			4,760,431
Loans, held-for-investment		8,285,120			8,158,276			8,243,625			8,074,944			7,945,611
Allowance for credit losses		(107,918)			(105,536)			(105,958)			(102,792)			(101,080)
Net loans, held-for-investment		8,177,202			8,052,740			8,137,667			7,972,152			7,844,531
Loans, held-for-sale		22,984			29,992			26,015			33,233			14,348
Premises and equipment, net		150,989			149,985			149,651			148,999			150,589
Goodwill		313,481			313,481			313,481			313,481			313,481
Other intangible assets		128			171			257			343			428
Other assets		316,941			308,006			302,848			313,723			301,251
Total assets	$	15,387,645		$	15,446,476		$	14,841,528		$	14,376,841		$	14,312,114

LIABILITIES AND SHAREHOLDERS' EQUITY
Noninterest-bearing deposits	$	3,385,878		$	3,401,057		$	3,446,262		$	3,439,059		$	3,356,553
Interest-bearing deposits		9,859,359			9,944,472			9,399,986			9,009,357			9,110,218
Total deposits		13,245,237			13,345,529			12,846,248			12,448,416			12,466,771
Repurchase agreements		67,946			62,956			50,646			48,026			56,606
Borrowings		22,306			21,680			21,956			22,153			26,978
Trade date payable		-			-			-			24,965			-
Other liabilities		108,305			98,994			92,410			95,929			81,498
Shareholders' equity		1,943,851			1,917,317			1,830,268			1,737,352			1,680,261
Total liabilities and shareholders' equity	$	15,387,645		$	15,446,476		$	14,841,528		$	14,376,841		$	14,312,114

	Quarter Ended
		2026			2025
INCOME STATEMENTS		Mar. 31			Dec. 31,			Sept. 30,			June 30,			Mar. 31,
Interest income	$	182,945		$	182,869		$	179,692		$	172,810		$	167,110
Interest expense		48,154			51,501			52,691			49,080			48,321
Net interest income		134,791			131,368			127,001			123,730			118,789
Provision for credit losses		2,291			(2,486)			24,435			3,132			3,528
Net interest income after provision for credit losses		132,500			133,854			102,566			120,598			115,261
Noninterest income		32,096			33,349			34,264			32,873			30,230
Noninterest expense		76,768			77,650			73,666			71,735			70,335
Net income before income taxes		87,828			89,553			63,164			81,736			75,156
Income tax expense		16,285			16,239			10,897			15,078			13,810
Net income	$	71,543		$	73,314		$	52,267		$	66,658		$	61,346

PER COMMON SHARE DATA
Net income - basic	$	0.50		$	0.51		$	0.37		$	0.47		$	0.43
Net income - diluted		0.50			0.51			0.36			0.47			0.43
Cash dividends declared		0.19			0.19			0.19			0.19			0.18
Book value		13.57			13.39			12.78			12.14			11.75
Tangible book value		11.38			11.20			10.59			9.95			9.55
Market value		29.45			29.87			33.65			35.98			35.92
Shares outstanding - end of period		143,279,030			143,213,102			143,188,051			143,077,619			143,019,433
Average outstanding shares - basic		143,210,755			143,180,215			143,105,224			143,023,544			142,949,514
Average outstanding shares - diluted		143,608,079			143,542,801			143,474,169			143,378,505			143,355,148

PERFORMANCE RATIOS
Return on average assets		1.89	%		1.94	%		1.44	%		1.89	%		1.78	%
Return on average equity		14.83			15.62			11.85			15.82			15.12
Return on average tangible equity		17.66			18.78			14.44			19.43			18.68
Net interest margin (tax equivalent)		3.86			3.81			3.80			3.81			3.74
Efficiency ratio		44.98			46.10			44.74			44.97			46.36

FIRST FINANCIAL BANKSHARES, INC.
SELECTED FINANCIAL DATA (UNAUDITED)
(In thousands)

	Quarter Ended
		2026			2025
ALLOWANCE FOR LOAN LOSSES		Mar. 31,			Dec. 31,			Sept. 30,			June 30,			Mar. 31,
Balance at beginning of period	$	105,536		$	105,958		$	102,792		$	101,080		$	98,325
Loans charged-off		(1,174)			(3,387)			(22,612)			(1,189)			(946)
Loan recoveries		818			2,996			272			469			710
Net recoveries (charge-offs)		(356)			(391)			(22,340)			(720)			(236)
Provision for loan losses		2,738			(31)			25,506			2,432			2,991
Balance at end of period	$	107,918		$	105,536		$	105,958		$	102,792		$	101,080

ALLOWANCE FOR UNFUNDED COMMITMENTS
Balance at beginning of period	$	6,387		$	8,842		$	9,914		$	9,214		$	8,677
Provision for unfunded commitments		(447)			(2,455)			(1,072)			700			537
Balance at end of period	$	5,940		$	6,387		$	8,842		$	9,914		$	9,214

Allowance for loan losses /
period-end loans held-for-investment		1.30	%		1.29	%		1.29	%		1.27	%		1.27	%
Allowance for loan losses /
nonperforming loans		206.16			188.41			187.39			162.60			164.16
Net charge-offs (recoveries) / average total loans
(annualized)		0.02			0.02			1.07			0.04			0.01

	As of
		2026			2025
COMPOSITION OF LOANS HELD-FOR-INVESTMENT		Mar. 31,			Dec. 31,			Sept. 30,			June 30,			Mar. 31,
Commercial:
C&I	$	1,149,931		$	1,116,461		$	1,174,770		$	1,202,151		$	1,144,429
Municipal		384,473			342,501			347,559			306,140			338,303
Total Commercial		1,534,404			1,458,962			1,522,329			1,508,291			1,482,732
Agricultural		77,583			95,776			88,820			86,133			90,186
Real Estate:
Construction & Development		1,169,037			1,157,865			1,214,649			1,172,834			1,098,069
Farm		329,151			327,625			322,710			302,969			331,464
Non-Owner Occupied CRE		825,771			832,816			802,675			746,341			753,898
Owner Occupied CRE		1,132,114			1,120,608			1,119,425			1,124,610			1,142,618
Residential		2,322,097			2,285,830			2,308,708			2,286,220			2,217,740
Total Real Estate		5,778,170			5,724,744			5,768,167			5,632,974			5,543,789
Consumer:
Auto		751,283			732,351			718,501			698,897			679,189
Non-Auto		143,680			146,443			145,808			148,649			149,715
Total Consumer		894,963			878,794			864,309			847,546			828,904

Total loans held-for-investment	$	8,285,120		$	8,158,276		$	8,243,625		$	8,074,944		$	7,945,611

SUMMARY OF LOAN CLASSIFICATION
Special Mention	$	66,864		$	66,058		$	76,647		$	62,774		$	46,103
Substandard		222,895			189,548			176,311			194,291			199,509
Total classified loans	$	289,759		$	255,606		$	252,958		$	257,065		$	245,612

NONPERFORMING ASSETS
Nonaccrual loans	$	52,129		$	55,121		$	56,394		$	63,142		$	60,430
Accruing loans 90 days past due		218			892			151			77			1,143
Total nonperforming loans		52,347			56,013			56,545			63,219			61,573
Foreclosed assets		1,962			479			1,997			489			115
Total nonperforming assets	$	54,309		$	56,492		$	58,542		$	63,708		$	61,688

As a % of loans held-for-investment and foreclosed assets		0.66	%		0.69	%		0.71	%		0.79	%		0.78	%
As a % of end of period total assets		0.35			0.37			0.39			0.44			0.43

	Quarter Ended
		2026			2025
CAPITAL RATIOS		Mar. 31,			Dec. 31,			Sept. 30,			June 30,			Mar. 31,
Common equity Tier 1 capital ratio		20.23	%		19.99	%		19.10	%		19.16	%		19.12	%
Tier 1 capital ratio		20.23			19.99			19.10			19.16			19.12
Total capital ratio		21.42			21.17			20.29			20.35			20.31
Tier 1 leverage ratio		12.58			12.55			12.34			12.61			12.46
Tangible common equity ratio		10.81			10.60			10.44			10.12			9.76
Equity/Assets ratio		12.63			12.41			12.33			12.08			11.74

	Quarter Ended
		2026			2025
NONINTEREST INCOME		Mar. 31,			Dec. 31,			Sept. 30,			June 30,			Mar. 31,
Trust fees	$	13,363		$	13,512		$	12,950		$	12,746		$	12,653
Service charges on deposits		6,077			6,140			6,447			6,126			6,177
Debit card fees		5,245			5,791			5,333			5,218			4,967
Credit card fees		651			678			699			707			577
Gain on sale and fees on mortgage loans		4,277			4,216			4,375			4,126			2,832
Net gain (loss) on sale of foreclosed assets		(56)			(12)			(122)			200			(35)
Net gain on sale of assets		-			-			-			6			-
Loan recoveries		290			546			1,664			810			574
Other noninterest income		2,249			2,478			2,918			2,934			2,485
Total noninterest income	$	32,096		$	33,349		$	34,264		$	32,873		$	30,230

NONINTEREST EXPENSE
Salaries, commissions and employee benefits, excluding profit sharing	$	42,959		$	42,409		$	40,681		$	39,834		$	39,157
Profit sharing expense		3,023			4,819			1,924			2,741			2,985
Net occupancy expense		3,630			3,458			3,545			3,600			3,720
Equipment expense		2,158			2,128			2,395			2,478			2,321
FDIC insurance premiums		1,560			1,695			1,635			1,585			1,575
Debit card expense		3,108			3,265			3,512			3,308			3,373
Legal, tax and professional fees		3,834			3,079			3,332			3,143			3,067
Audit fees		455			531			536			463			451
Printing, stationery and supplies		623			528			456			473			482
Amortization of intangible assets		43			86			86			86			95
Advertising, meals and public relations		1,701			1,923			1,714			1,653			1,677
Operational and other losses		1,000			1,583			1,957			720			540
Software amortization and expense		4,594			4,456			4,280			4,020			3,732
Other noninterest expense		8,080			7,690			7,613			7,631			7,160
Total noninterest expense	$	76,768		$	77,650		$	73,666		$	71,735		$	70,335

TAX EQUIVALENT YIELD ADJUSTMENT	$	3,791		$	3,709		$	3,406		$	2,926		$	2,700

FIRST FINANCIAL BANKSHARES, INC.
SELECTED FINANCIAL DATA (UNAUDITED)
(In thousands)

	Three Months Ended												Three Months Ended
	Mar. 31, 2026												Dec. 31, 2025
		Average			Tax Equivalent			Yield /						Average			Tax Equivalent	Yield /
		Balance			Interest			Rate						Balance			Interest	Rate
Interest-earning assets:
Federal funds sold	$	4,565		$	40			3.55	%				$	6,565		$	62	3.75	%
Interest-bearing demand deposits in nonaffiliated banks		461,579			4,209			3.70						434,445			4,284	3.91
Taxable securities		4,076,690			32,283			3.17						3,683,108			29,231	3.17
Tax-exempt securities		1,726,765			14,184			3.29						1,712,261			14,144	3.30
Loans		8,273,995			136,020			6.67						8,241,265			138,857	6.68
Total interest-earning assets		14,543,594		$	186,736			5.21	%					14,077,644		$	186,578	5.26	%
Noninterest-earning assets		821,635												893,739
Total assets	$	15,365,229											$	14,971,383
Interest-bearing liabilities:
Deposits	$	9,824,362		$	47,851			1.98	%				$	9,476,716		$	51,207	2.14	%
Repurchase Agreements		62,849			229			1.48						56,573			219	1.54
Borrowings		22,155			74			1.35						22,113			75	1.35
Total interest-bearing liabilities		9,909,366		$	48,154			1.97	%					9,555,402		$	51,501	2.14	%
Noninterest-bearing deposits		3,401,092												3,454,171
Other noninterest-bearing liabilities		97,986												99,623
Shareholders' equity		1,956,785												1,862,187
Total liabilities and shareholders' equity	$	15,365,229											$	14,971,383

Net interest income and margin (tax equivalent)				$	138,582			3.86	%							$	135,077	3.81	%

	Three Months Ended												Three Months Ended
	Sept. 30, 2025												June 30, 2025
		Average			Tax Equivalent			Yield /						Average			Tax Equivalent	Yield /
		Balance			Interest			Rate						Balance			Interest	Rate
Interest-earning assets:
Federal funds sold	$	10,711		$	130			4.82	%				$	9,397		$	113	4.84	%
Interest-bearing demand deposits in nonaffiliated banks		216,739			2,387			4.37						379,364			4,191	4.43
Taxable securities		3,560,347			26,539			2.98						3,470,028			25,242	2.91
Tax-exempt securities		1,564,767			12,906			3.30						1,433,498			10,811	3.02
Loans		8,249,113			141,136			6.79						8,045,340			135,378	6.75
Total interest-earning assets		13,601,677		$	183,098			5.34	%					13,337,627		$	175,735	5.28	%
Noninterest-earning assets		826,660												826,635
Total assets	$	14,428,337											$	14,164,262
Interest-bearing liabilities:
Deposits	$	9,051,463		$	52,010			2.28	%				$	8,923,737		$	48,730	2.19	%
Repurchase Agreements		50,051			210			1.66						54,482			221	1.63
Borrowings		56,198			471			3.33						26,557			128	1.93
Total interest-bearing liabilities		9,157,712		$	52,691			2.28	%					9,004,776		$	49,079	2.19	%
Noninterest-bearing deposits		3,419,378												3,383,851
Other noninterest-bearing liabilities		101,268												85,745
Shareholders' equity		1,749,979												1,689,890
Total liabilities and shareholders' equity	$	14,428,337											$	14,164,262

Net interest income and margin (tax equivalent)				$	130,407			3.80	%							$	126,656	3.81	%

	Three Months Ended
	Mar. 31, 2025
		Average			Tax Equivalent			Yield /
		Balance			Interest			Rate
Interest-earning assets:
Federal funds sold	$	7,596		$	90			4.81	%
Interest-bearing demand deposits in nonaffiliated banks		286,040			3,174			4.50
Taxable securities		3,506,035			25,034			2.86
Tax-exempt securities		1,407,440			9,912			2.82
Loans		7,952,946			131,600			6.71
Total interest-earning assets		13,160,057		$	169,810			5.23	%
Noninterest-earning assets		830,055
Total assets	$	13,990,112
Interest-bearing liabilities:
Deposits	$	8,882,040		$	47,549			2.17	%
Repurchase Agreements		53,920			209			1.57
Borrowings		74,561			563			3.06
Total interest-bearing liabilities		9,010,521		$	48,321			2.17	%
Noninterest-bearing deposits		3,265,838
Other noninterest-bearing liabilities		68,218
Shareholders' equity		1,645,535
Total liabilities and shareholders' equity	$	13,990,112

Net interest income and margin (tax equivalent)				$	121,489			3.74	%

View original content:https://www.prnewswire.com/news-releases/first-financial-bankshares-announces-first-quarter-2026-earnings-302745203.html

SOURCE First Financial Bankshares, Inc.