FIRST FINANCIAL BANKSHARES ANNOUNCES FOURTH QUARTER AND YEAR ENDED DECEMBER 31, 2025 EARNINGS
ABILENE, Texas, Jan. 22, 2026 /PRNewswire/ -- First Financial Bankshares, Inc. (the "Company," "we," "us" or "our") (NASDAQ:FFIN) today reported earnings of $73.31 million for the fourth quarter of 2025 compared to earnings of $52.27 million for the third quarter of 2025 and $62.32 million for the same quarter a year ago. Diluted earnings per share were $0.51 for the fourth quarter of 2025 compared with $0.36 for the third quarter of 2025 and $0.43 for the fourth quarter of 2024.
For the year ended December 31, 2025, the Company reported net income of $253.58 million, or $1.77 per diluted share, compared to $223.51 million, or $1.56 per diluted share, for the year ended December 31, 2024, reflecting an increase of $30.07 million, or 13.45 percent.
"We are pleased to report a strong finish to 2025, highlighted by record quarterly net income. We are especially happy with the strong deposit growth during the quarter, which will set us up well to grow both loans and securities in 2026," said F. Scott Dueser, Chairman and CEO of First Financial Bankshares, Inc. "We are encouraged by our organic balance sheet growth of almost $1.50 billion in the past year, increasing earning assets while continuing to grow net interest income. As we enter 2026, we will continue to remain focused on sound lending growth, managing the changing interest rate environment and the regulatory landscape. We appreciate the continued support of our customers, shareholders and associates and assure you that we will continue to put You First!"
Net interest income for the fourth quarter of 2025 was $131.37 million compared to $127.00 million for the third quarter of 2025 and $116.12 million for the fourth quarter of 2024. The net interest margin, on a tax- equivalent basis, was 3.81 percent for the fourth quarter of 2025 compared to 3.80 percent for the third quarter of 2025 and 3.67 percent in the fourth quarter of 2024. Average interest-earning assets were $14.08 billion for the fourth quarter of 2025 compared to $12.86 billion for the same quarter a year ago.
The Company recorded a credit provision reversal of $2.49 million for the fourth quarter of 2025 compared to a provision for credit losses of $24.44 million for the third quarter of 2025 and $1.00 million in the fourth quarter 2024. The Company recorded a provision for credit losses of $28.61 million for the year ended December 31, 2025, compared to $13.82 million recorded in 2024.
The allowance for credit losses totaled $105.54 million or 1.29 percent of total loans held-for-investment ("loans hereafter") at December 31, 2025, compared to $98.33 million, at December 31, 2024, or 1.24 percent of loans. Additionally, the reserve for unfunded commitments totaled $6.39 million at December 31, 2025 compared to $8.68 million at December 31, 2024.
For the fourth quarter of 2025, net charge-offs totaled $391 thousand compared to net charge-offs of $22.34 million for the third quarter of 2025 and $1.94 million for the fourth quarter of 2024. Nonperforming assets as a percentage of loans and foreclosed assets totaled 0.69 percent on December 31, 2025, compared to 0.71 percent at September 30, 2025 and 0.80 percent at December 31, 2024. Classified loans totaled $255.61 million at December 31, 2025, compared to $252.96 million at September 30, 2025 and $233.85 million at December 31, 2024.
Noninterest income for the fourth quarter of 2025 was $33.35 million compared to $30.98 million for the fourth quarter of 2024. Notable changes for the fourth quarter of 2025 when compared to the same quarter a year ago are as follows:
Mortgage income increased to $4.22 million for the fourth quarter of 2025 compared to $3.01 million in the fourth quarter of 2024 due to increased loan origination volumes and pricing margins.
Trust fee income increased to $13.51 million for the fourth quarter of 2025 compared to $12.66 million in the same quarter last year which represents an increase of $850 thousand or 6.71 percent. Trust revenue has increased primarily due to growth in market value of assets under management to $11.94 billion at December 31, 2025 compared to $10.83 billion at December 31, 2024.
Noninterest expense for the fourth quarter of 2025 totaled $77.65 million compared to $70.10 million for the fourth quarter of 2024. Notable changes for the fourth quarter of 2025 when compared to the same quarter a year ago are as follows:
Salary, commissions, and employee benefit costs rose to $47.23 million for the fourth quarter of 2025, compared to $41.64 million in the fourth quarter of 2024. The increase from the fourth quarter of 2024 is largely due to merit-based pay increases and market adjustments for front line staff over the prior year, an increase of $1.17 million in profit sharing expense and an increase of $384 thousand in officer bonus and incentive accruals related to the Company's growth in net income over the prior year and increased mortgage activity.
Noninterest expense, excluding salary related costs, increased $1.97 million for the fourth quarter of 2025 compared to the same period in 2024 largely due to increases in software amortization and expense and operational and other losses.
The Company's efficiency ratio was 46.10 percent for the fourth quarter of 2025 and 46.81 percent for the fourth quarter of 2024. The decrease from the same period in the prior year is primarily due to the increase in net interest income in 2025.
As of December 31, 2025, consolidated total assets were $15.45 billion compared to $13.98 billion at December 31, 2024. Loans totaled $8.16 billion at December 31, 2025, compared with loans of $7.91 billion at December 31, 2024. Loans grew $245.18 million, or 3.10 percent, from December 31, 2024 balances. Deposits and Repurchase Agreements totaled $13.41 billion at December 31, 2025, compared to $12.90 billion at September 30, 2025 and $12.16 billion at December 31, 2024. During the fourth quarter of 2025, Deposits and Repurchase Agreements grew $511.59 million, or 15.74 percent annualized, when compared to September 30, 2025 balances and $1.25 billion from December 31, 2024, or 10.26 percent.
Shareholders' equity was $1.92 billion as of December 31, 2025, compared to $1.61 billion at December 31, 2024, resulting from growth in retained earnings and improvement in Other Comprehensive Income ("OCI") due to the decrease in unrealized losses in the bond portfolio related to lower longer-term interest rates. The unrealized loss on the securities portfolio, net of applicable tax, totaled $269.94 million at December 31, 2025, compared to $424.29 million at December 31, 2024.
About First Financial Bankshares, Inc.
Headquartered in Abilene, Texas, First Financial Bankshares is a financial holding company that through its wholly-owned 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, Lumberton, Keller, Kingwood, 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 and 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
2025
2024
ASSETS
Dec. 31,
Sept. 30,
June 30,
Mar. 31,
Dec. 31,
Cash and due from banks
$
249,466
$
237,466
$
264,000
$
232,943
$
259,996
Interest-bearing demand deposits in banks
826,947
401,580
435,612
682,362
503,417
Federal funds sold
1,575
11,750
8,750
11,750
-
Investment securities
5,514,113
5,260,813
4,886,548
4,760,431
4,617,759
Loans, held-for-investment
8,158,276
8,243,625
8,074,944
7,945,611
7,913,098
Allowance for credit losses
(105,536)
(105,958)
(102,792)
(101,080)
(98,325)
Net loans, held-for-investment
8,052,740
8,137,667
7,972,152
7,844,531
7,814,773
Loans, held-for-sale
29,992
26,015
33,233
14,348
8,235
Premises and equipment, net
149,985
149,651
148,999
150,589
151,904
Goodwill
313,481
313,481
313,481
313,481
313,481
Other intangible assets
171
257
343
428
523
Other assets
308,006
302,848
313,723
301,251
309,330
Total assets
$
15,446,476
$
14,841,528
$
14,376,841
$
14,312,114
$
13,979,418
LIABILITIES AND SHAREHOLDERS' EQUITY
Noninterest-bearing deposits
$
3,401,057
$
3,446,262
$
3,439,059
$
3,356,553
$
3,348,041
Interest-bearing deposits
9,944,472
9,399,986
9,009,357
9,110,218
8,751,133
Total deposits
13,345,529
12,846,248
12,448,416
12,466,771
12,099,174
Repurchase agreements
62,956
50,646
48,026
56,606
61,416
Borrowings
21,680
21,956
22,153
26,978
135,603
Trade date payable
-
-
24,965
-
-
Other liabilities
98,994
92,410
95,929
81,498
76,665
Shareholders' equity
1,917,317
1,830,268
1,737,352
1,680,261
1,606,560
Total liabilities and shareholders' equity
$
15,446,476
$
14,841,528
$
14,376,841
$
14,312,114
$
13,979,418
Quarter Ended
2025
2024
INCOME STATEMENTS
Dec. 31,
Sept. 30,
June 30,
Mar. 31,
Dec. 31,
Interest income
$
182,869
$
179,692
$
172,810
$
167,110
$
165,792
Interest expense
51,501
52,691
49,080
48,321
49,675
Net interest income
131,368
127,001
123,730
118,789
116,117
Provision for credit losses
(2,486)
24,435
3,132
3,528
1,003
Net interest income after provision for credit losses
133,854
102,566
120,598
115,261
115,114
Noninterest income
33,349
34,264
32,873
30,230
30,977
Noninterest expense
77,650
73,666
71,735
70,335
70,099
Net income before income taxes
89,553
63,164
81,736
75,156
75,992
Income tax expense
16,239
10,897
15,078
13,810
13,671
Net income
$
73,314
$
52,267
$
66,658
$
61,346
$
62,321
PER COMMON SHARE DATA
Net income - basic
$
0.51
$
0.37
$
0.47
$
0.43
$
0.44
Net income - diluted
0.51
0.36
0.47
0.43
0.43
Cash dividends declared
0.19
0.19
0.19
0.18
0.18
Book value
13.39
12.78
12.14
11.75
11.24
Tangible book value
11.20
10.59
9.95
9.55
9.04
Market value
29.87
33.65
35.98
35.92
36.05
Shares outstanding - end of period
143,213,102
143,188,051
143,077,619
143,019,433
142,944,704
Average outstanding shares - basic
143,180,215
143,105,224
143,023,544
142,949,514
142,898,110
Average outstanding shares - diluted
143,542,801
143,474,169
143,378,505
143,355,148
143,352,067
PERFORMANCE RATIOS
Return on average assets
1.94
%
1.44
%
1.89
%
1.78
%
1.81
%
Return on average equity
15.62
11.85
15.82
15.12
15.17
Return on average tangible equity
18.78
14.44
19.43
18.68
18.78
Net interest margin (tax equivalent)
3.81
3.80
3.81
3.74
3.67
Efficiency ratio
46.10
44.74
44.97
46.36
46.81
Year Ended
Dec. 31,
INCOME STATEMENTS
2025
2024
Interest income
$
702,480
$
628,918
Interest expense
201,593
202,177
Net interest income
500,887
426,741
Provision for credit losses
28,609
13,821
Net interest income after provisions for credit losses
472,278
412,920
Noninterest income
130,716
123,989
Noninterest expense
293,391
265,063
Net income before income taxes
309,603
271,846
Income tax expense
56,024
48,335
Net income
$
253,579
$
223,511
PER COMMON SHARE DATA
Net income - basic
$
1.77
$
1.56
Net income - diluted
1.77
1.56
Cash dividends declared
0.75
0.72
Book value
13.39
11.24
Tangible book value
11.20
9.04
Market value
$
29.87
$
36.05
Shares outstanding - end of period
143,213,102
142,944,704
Average outstanding shares - basic
143,065,368
142,822,880
Average outstanding shares - diluted
143,447,988
143,232,520
PERFORMANCE RATIOS
Return on average assets
1.76
%
1.68
%
Return on average equity
14.59
14.51
Return on average tangible ...
