Core Insights - First Financial Bankshares Inc (FFIN) is a significant player in the financial services sector, particularly in the Texas region, and has shown confidence from its leadership through stock purchases [1] Financial Performance - For Q3 2025, FFIN reported a net income of $52.27 million, down from $55.31 million in Q3 2024 and significantly lower than $66.66 million in the previous quarter [2] - The diluted earnings per share for Q3 2025 was $0.36, missing the Zacks Consensus Estimate of $0.47 per share by 23.40% [2] - Revenues for the same quarter were $164.67 million, exceeding the Zacks Consensus Estimate by 1.96% and showing an increase from $142.1 million reported a year ago [3] Impact of Fraudulent Activity - The quarter's performance was adversely affected by a $21.55 million credit loss due to fraudulent activity involving a commercial borrower, which the company is addressing through legal actions [3] - Despite this setback, core earnings trends remain positive, with nearly 12% year-to-date earnings growth compared to 2024 [4] Stock Performance - FFIN's stock is currently priced at $30.88, reflecting a decrease of approximately 1.46% [4] - The company's market capitalization is around $4.42 billion, with a trading volume of 528,272 shares, indicating resilience and potential for recovery [4]

Financial Performance - Third quarter 2025 earnings were $52.27 million, down from $55.31 million in Q3 2024 and $66.66 million in Q2 2025; diluted earnings per share were $0.36 compared to $0.39 and $0.47 respectively[1][2] - Net income for the quarter was $52,267 thousand, compared to $55,308 thousand in the same quarter last year, indicating a decrease of 5.25%[15] - Return on average assets was 1.44% for the quarter, down from 1.66% in the same quarter last year[15] - Return on average equity decreased to 11.85% from 14.00% year-over-year[15] Income and Revenue - Net interest income increased to $127.00 million in Q3 2025 from $107.11 million in Q3 2024, with a net interest margin of 3.80% compared to 3.50% a year ago[2] - Noninterest income for Q3 2025 was $34.26 million, an increase from $32.36 million in Q3 2024[5] - Noninterest income rose to $34,264 thousand, up from $32,362 thousand in the same quarter last year, marking an increase of 5.88%[15] - Total noninterest income for the nine months ended September 30, 2025, was $97,366,000, an increase of 4% from $93,012,000 in 2024[23] Expenses and Loss Provisions - The provision for credit losses was $24.44 million in Q3 2025, significantly higher than $6.12 million in Q3 2024 and $3.13 million in Q2 2025[3] - Total noninterest expense rose to $73,666 thousand, compared to $71,735 thousand in the previous quarter, marking an increase of 2.70%[21] - Total noninterest expense increased to $215,736,000, reflecting a 10.6% rise from $194,965,000 in 2024[23] Asset and Deposit Growth - Total assets reached $14.84 billion as of September 30, 2025, up from $13.58 billion a year earlier; loans increased to $8.24 billion from $7.72 billion[7] - Total deposits increased to $12,846,248 thousand, up from $12,448,416 thousand in the previous quarter, reflecting a growth of 3.20%[15] - Core deposits and repurchase agreements grew by $250.45 million, or 7.95% annualized, compared to June 30, 2025[7] - Total assets increased to $14,841,528 thousand as of September 30, 2025, up from $14,376,841 thousand in the previous quarter, representing a growth of 3.23%[15] Capital and Equity - Shareholders' equity rose to $1.83 billion as of September 30, 2025, compared to $1.66 billion a year ago[8] - The common equity Tier 1 capital ratio remained stable at 19.10% as of September 30, 2025, consistent with the previous quarter[21] - The total capital ratio was reported at 20.29% for the quarter ended September 30, 2025, slightly down from 20.35% in the previous quarter[21] - The equity/assets ratio improved to 12.33% as of September 30, 2025, compared to 12.08% in the previous quarter, indicating a stronger capital position[21] Asset Quality - Nonperforming assets as a percentage of loans and foreclosed assets decreased to 0.71% at September 30, 2025, from 0.83% a year ago[4] - Nonperforming assets decreased to $58,542 thousand, down from $63,708 thousand in the previous quarter, indicating a reduction of approximately 8.67%[19] - The allowance for loan losses increased to $105,958 thousand as of September 30, 2025, up from $102,792 thousand in the previous quarter, reflecting a provision for loan losses of $25,506 thousand[19] - The total classified loans amounted to $252,958 thousand, a decrease from $257,065 thousand in the previous quarter, reflecting a decline of approximately 1.73%[19] Efficiency and Management - The efficiency ratio improved to 44.74% in Q3 2025 from 46.45% in Q3 2024, primarily due to increased net interest income[6] - The efficiency ratio improved to 44.74% from 46.45% in the same quarter last year, indicating better cost management[15] Other Financial Metrics - Cash dividends declared remained stable at $0.19 per share, consistent with the previous quarter[15] - The net charge-offs (recoveries) to average total loans (annualized) was 1.07% for the quarter ended September 30, 2025, compared to 0.04% in the previous quarter[19] - Interest-bearing liabilities totaled $9,157,712,000, with an average interest rate of 2.28%[25] - Noninterest-bearing deposits amounted to $3,383,851,000, indicating a stable funding base[25]

Core Insights - First Financial Bankshares (FFIN) reported quarterly earnings of $0.36 per share, missing the Zacks Consensus Estimate of $0.47 per share, and down from $0.39 per share a year ago [1][2] - The company posted revenues of $164.67 million for the quarter ended September 2025, exceeding the Zacks Consensus Estimate by 1.96% and up from $142.1 million year-over-year [3] - The stock has underperformed the market, losing about 10.8% since the beginning of the year compared to the S&P 500's gain of 13.9% [4] Earnings Performance - The earnings surprise for the recent quarter was -23.40%, while the previous quarter saw a positive surprise of +4.44% [2] - Over the last four quarters, First Financial has surpassed consensus EPS estimates two times and topped consensus revenue estimates four times [2][3] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $0.47 on revenues of $163 million, and for the current fiscal year, it is $1.81 on revenues of $635.7 million [8] - The estimate revisions trend for First Financial was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [7] Industry Context - The Banks - Southwest industry, to which First Financial belongs, is currently in the top 24% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [9] - Another company in the same industry, Southside Bancshares (SBSI), is expected to report quarterly earnings of $0.72 per share, reflecting a year-over-year change of +5.9% [10]

Core Viewpoint - First Financial Bankshares, Inc. reported a decline in net income for Q3 2025, primarily due to a significant credit loss related to fraudulent activity, but core earnings trends remain positive with year-to-date growth of nearly 12% compared to 2024 [2][3]. Financial Performance - Net income for Q3 2025 was $52.27 million, down from $55.31 million in Q3 2024 and $66.66 million in Q2 2025 [1]. - Diluted earnings per share decreased to $0.36 from $0.39 in Q3 2024 and $0.47 in Q2 2025 [1]. - Net interest income increased to $127.00 million from $107.11 million in Q3 2024 and $123.73 million in Q2 2025 [2]. - The net interest margin was 3.80% for Q3 2025, compared to 3.50% in Q3 2024 and 3.81% in Q2 2025 [2]. Credit Losses and Provisions - The company recorded a provision for credit losses of $24.44 million in Q3 2025, significantly higher than $6.12 million in Q3 2024 and $3.13 million in Q2 2025 [3]. - Net charge-offs totaled $22.34 million in Q3 2025, compared to $786 thousand in Q3 2024 [4]. - The allowance for credit losses was $105.96 million, or 1.29% of loans, consistent with the previous year [3]. Asset and Loan Growth - Total assets increased to $14.84 billion as of September 30, 2025, from $13.58 billion a year earlier [5]. - Loans held-for-investment grew to $8.24 billion, up from $7.72 billion in Q3 2024 [5]. - Core deposits and repurchase agreements increased by $250.45 million, or 7.95% annualized, compared to Q2 2025 [5]. Noninterest Income and Expenses - Noninterest income for Q3 2025 was $34.26 million, up from $32.36 million in Q3 2024 [5]. - Noninterest expenses totaled $73.67 million, compared to $66.01 million in Q3 2024 [5]. - The efficiency ratio improved to 44.74% from 46.45% in Q3 2024, primarily due to increased net interest income [5]. Shareholder Equity and Market Position - Shareholders' equity rose to $1.83 billion as of September 30, 2025, compared to $1.66 billion a year earlier [5]. - The company continues to focus on maintaining growth and profitability while addressing the recent credit loss incident [2].

Accessibility StatementSkip Navigation ABILENE, Texas, Oct. 22, 2025 /PRNewswire/ -- First Financial Bankshares (the "Company") announced today the election of Tim Brown as Executive Vice President and Chief Information Officer of the Company and CEO of First Technology Services, Inc. (a wholly owned subsidiary of the Company), as part of our continued succession planning process. John Ruzicka, who has been serving as Chief Information Officer since 2018, will be transitioning to the role of Chief Banking ...

Core Points - First Financial Bank is participating in the inaugural Texas Banks Community Day of Service, a statewide initiative by the Texas Bankers Association aimed at uniting financial institutions for community service [1][2][3] - On October 13, 2025, over 1,000 employees from First Financial Bank will volunteer with local nonprofits, schools, and service organizations, focusing on various projects such as food banks and neighborhood cleanups [2][3] - The Day of Service emphasizes the role of community banks in strengthening local communities and showcases the collaborative impact of banks working together [3] Company Overview - First Financial Bank is a wholly owned subsidiary of First Financial Bankshares, Inc., which operates multiple banking regions with 79 locations across Texas [4] - The company is headquartered in Abilene, Texas, and also operates First Financial Trust & Asset Management Company and First Technology Services, Inc. [4]

Core Insights - Income investors prioritize generating consistent cash flow from liquid investments, with dividends being a key focus for this group [1][2] - Dividends significantly contribute to long-term returns, often exceeding one-third of total returns in many cases [2] Company Overview - First Financial Bankshares (FFIN), based in Abilene, operates in the Finance sector and has experienced a price change of 0.14% this year [3] - The company currently pays a dividend of $0.19 per share, resulting in a dividend yield of 2.11%, which is higher than the Banks - Southwest industry's yield of 1.12% and the S&P 500's yield of 1.49% [3] Dividend Growth - FFIN's annualized dividend of $0.76 has increased by 5.6% from the previous year [4] - Over the past five years, the company has raised its dividend four times, averaging an annual increase of 7.93% [4] - The current payout ratio is 44%, indicating that the company pays out 44% of its trailing 12-month earnings per share as dividends [4] Earnings Growth - The Zacks Consensus Estimate for FFIN's earnings in 2025 is $1.81 per share, reflecting a year-over-year growth rate of 16.03% [5] Investment Considerations - FFIN is viewed as an attractive dividend option and a compelling investment opportunity, holding a Zacks Rank of 2 (Buy) [6]

Core Viewpoint - First Financial Bankshares (FFIN) has received an upgrade to a Zacks Rank 2 (Buy), indicating a positive outlook based on rising earnings estimates [1][4]. Earnings Estimates and Ratings - The Zacks rating system is primarily driven by changes in a company's earnings picture, with the Zacks Consensus Estimate tracking EPS estimates from sell-side analysts [2]. - The Zacks rating upgrade reflects an improvement in First Financial's earnings outlook, which is expected to positively influence its stock price [4][6]. Impact of Earnings Estimates on Stock Prices - Changes in future earnings potential, as indicated by earnings estimate revisions, are strongly correlated with near-term stock price movements, largely due to institutional investors' reliance on these estimates for valuation [5]. - For First Financial, the increase in earnings estimates suggests an improvement in the company's underlying business, which should lead to higher stock prices as investors respond positively [6]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a strong historical performance, particularly for Zacks Rank 1 stocks, which have averaged a +25% annual return since 1988 [8]. - The upgrade of First Financial to a Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, indicating a strong potential for market-beating returns in the near term [10][11]. Earnings Estimate Revisions for First Financial - First Financial is projected to earn $1.81 per share for the fiscal year ending December 2025, with no year-over-year change, but the Zacks Consensus Estimate has increased by 0.3% over the past three months [9].

Core Viewpoint - First Financial Bankshares (FFIN) has shown a downtrend recently, losing 6.6% over the past two weeks, but a hammer chart pattern suggests a potential trend reversal as buying interest may be emerging [1][2]. Technical Analysis - The hammer chart pattern indicates a possible bottoming out, suggesting that selling pressure may be subsiding [2][5]. - This pattern forms when there is a small candle body with a long lower wick, indicating that despite a new low, buying interest has emerged to push the stock price up towards the opening price [4][5]. - Hammer candles can appear on various timeframes and are utilized by both short-term and long-term investors [5]. Fundamental Analysis - There has been a positive trend in earnings estimate revisions for FFIN, which is a bullish indicator suggesting potential price appreciation [7]. - The consensus EPS estimate for the current year has increased by 0.3% over the last 30 days, indicating strong agreement among analysts regarding improved earnings potential [8]. - FFIN currently holds a Zacks Rank of 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks, which typically outperform the market [9][10].

Financial Performance - Net earnings for the three months ended June 30, 2025, were $66,658 thousand, an increase of 27% from $52,485 thousand in 2024[16]. - Comprehensive earnings for the three months ended June 30, 2025, were $82,091 thousand, compared to $52,155 thousand in 2024, an increase of 57.4%[17]. - Net earnings for the six months ended June 30, 2025, were $128,004 thousand, an increase of 20.7% compared to $105,882 thousand for the same period in 2024[23]. - Net earnings for Q2 2025 were $66.66 million, a 27.00% increase from $52.49 million in Q2 2024[179]. - Diluted earnings per share for Q2 2025 was $0.47, compared to $0.37 in Q2 2024[179]. - Diluted earnings per share for the first six months of 2025 was $0.89, compared to $0.74 in the same period of 2024[181]. Asset and Loan Growth - Total assets increased to $14,376,841 thousand as of June 30, 2025, up from $13,164,075 thousand in 2024, representing an increase of 9.2%[13]. - Net loans held-for-investment rose to $7,972,152 thousand, a 7.4% increase from $7,424,563 thousand in 2024[13]. - Total loans held-for-investment as of June 30, 2025, were $8.07 billion, an increase of $161.85 million compared to December 31, 2024[208]. - The loan portfolio totaled $8,074,944,000 as of June 30, 2025, an increase from $7,519,733,000 in June 2024, with a net allowance for credit losses of $102,792,000[90]. Income and Revenue - Total interest income for the three months ended June 30, 2025, was $172,810 thousand, compared to $153,673 thousand in 2024, reflecting a growth of 12.4%[16]. - Net interest income after provision for credit losses was $120,598 thousand for the three months ended June 30, 2025, compared to $97,385 thousand in 2024, a rise of 23.9%[16]. - Tax-equivalent net interest income for Q2 2025 was $126.66 million, up from $105.85 million in Q2 2024[184]. - Noninterest income for the first six months of 2025 was $63.10 million, an increase of $2.45 million from the same period in 2024[198]. Dividends and Shareholder Equity - The company declared dividends per share of $0.19 for the three months ended June 30, 2025, compared to $0.18 in 2024, reflecting a 5.6% increase[16]. - As of June 30, 2025, total shareholders' equity increased to $1,737,352,000[20]. - Cash dividends declared increased to $0.19 per share for the quarter ending June 30, 2025, totaling $27,206,000[19]. Credit Quality and Loss Provisions - The provision for credit losses decreased to $3,132 thousand for the three months ended June 30, 2025, down from $5,888 thousand in 2024, indicating improved credit quality[16]. - The allowance for credit losses for the three months ended June 30, 2025, was reported at $102,792,000, up from $101,080,000 for the same period in 2024, reflecting a growth of about 1.7%[94]. - The total charge-offs for the three months ended June 30, 2025, were $1,189,000, compared to $702,000 for the same period in 2024, reflecting an increase of approximately 69%[96]. Investment and Securities - The Company’s investment portfolio includes obligations of state and political subdivisions, mortgage pass-through securities, corporate bonds, and municipal bonds, with fair values determined by independent pricing services[44]. - The total fair value of available-for-sale investment securities is $4,886,548,000, an increase from $4,573,024,000 as of June 30, 2024, representing a growth of approximately 6.85%[155]. - The total unrealized losses on investment securities were attributed to changes in interest rates rather than credit-related events, with no allowance for credit losses required[85]. Operational Metrics - The net interest margin for Q2 2025 was 3.81%, an increase of 33 basis points from Q2 2024[190]. - Average earning assets increased to $13.34 billion in Q2 2025, compared to $12.23 billion in Q2 2024, driven by a $640.04 million increase in loans[184]. - Total noninterest expense for Q2 2025 was $71.74 million, compared to $65.01 million in Q2 2024, resulting in an efficiency ratio of 44.97% for Q2 2025, improved from 47.41% in Q2 2024[200]. Regulatory and Accounting Changes - ASU 2023-02 allows entities to account for qualifying tax equity investments using the proportional amortization method, which is not expected to significantly impact financial statements[34]. - ASU 2023-07 expands segment disclosure requirements, effective for annual financial statements in 2024, with no significant impact anticipated on financial statements[35]. - ASU 2023-09 requires more detailed disclosures in tax rate reconciliations, effective for annual reporting periods beginning after December 15, 2024, with no significant impact expected[36][38].