UNITED STATES SECURITIES AND EXCHANGE COMMISSION ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2025 Washington, D.C. 20549 FORM 10-Q ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 0-07674 First Financial Bankshares, Inc. (Exact name of registrant as specified in its charter) Texas 75-0944023 (State or other jurisdiction of in ...

Core Viewpoint - First Financial Bankshares, Inc. has promoted Kyle McVey to Executive Vice President and Chief Financial Officer, a role previously held by Michelle Hickox, who will continue as Executive Vice President and CFO for the parent company [1][2]. Group 1: Leadership Changes - Kyle McVey's promotion highlights the company's commitment to strategic succession planning and collaboration between him and Michelle Hickox as the company expands [2]. - McVey has been with First Financial since 2011 and previously served as Executive Vice President and Chief Accounting Officer, overseeing financial reporting, acquisition strategy, audit, and investor relations [2]. Group 2: Contributions and Initiatives - McVey has significantly contributed to the company's progress, particularly in enhancing investor relations and accounting practices, and leading the Customer Service First initiative [2]. - He played a key role in developing the company's Vision and Mission statements and the 21 Non-Negotiables that define excellence in customer service [2]. Group 3: Educational Background - McVey holds bachelor's degrees in accounting and finance and a master's in accounting from Abilene Christian University, is a licensed CPA, and graduated as valedictorian from the Southwestern Graduate School of Banking [3]. Group 4: Company Overview - First Financial Bankshares, Inc. is headquartered in Abilene, Texas, and operates multiple banking regions with 79 locations across Texas [4]. - The company is listed on the NASDAQ Global Select Market under the trading symbol FFIN [5].

Core Viewpoint - First Financial Bankshares (FFIN) reported quarterly earnings of $0.47 per share, exceeding the Zacks Consensus Estimate of $0.45 per share, and showing an increase from $0.37 per share a year ago, indicating a positive earnings surprise of +4.44% [1][2] Financial Performance - The company posted revenues of $159.53 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 3.52%, compared to $137.11 million in the same quarter last year [2] - Over the last four quarters, First Financial has exceeded consensus EPS estimates two times and topped consensus revenue estimates four times [2] Stock Performance and Outlook - First Financial shares have increased by approximately 0.8% since the beginning of the year, while the S&P 500 has gained 6.5% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] Earnings Estimates - The current consensus EPS estimate for the upcoming quarter is $0.47 on revenues of $157.2 million, and for the current fiscal year, it is $1.80 on revenues of $618.8 million [7] - The estimate revisions trend for First Financial was mixed prior to the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] Industry Context - The Banks - Southwest industry, to which First Financial belongs, is currently ranked in the top 17% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8]

```markdown [Financial Highlights](index=1&type=section&id=Financial%20Highlights) First Financial Bankshares reported strong Q2 2025 results, driven by significant net earnings growth and improved margins Q2 2025 Key Earnings Metrics | Metric | Q2 2025 | Q2 2024 | Q1 2025 | | :--- | :--- | :--- | :--- | | Net Earnings | $66.66 M | $52.49 M | $61.35 M | | Diluted EPS | $0.47 | $0.37 | $0.43 | - CEO F. Scott Dueser attributed the positive results to **healthy loan and deposit growth**, **improved margin**, and **increased trust revenue**, expressing a **good outlook** for the rest of the year[2](index=2&type=chunk) [Financial Performance Analysis](index=1&type=section&id=Financial%20Performance%20Analysis) Q2 2025 financial performance was strong, marked by net interest income growth, margin expansion, and improved efficiency [Net Interest Income and Margin](index=1&type=section&id=Net%20Interest%20Income%20and%20Margin) Net interest income for Q2 2025 rose significantly, with tax-equivalent net interest margin expanding to **3.81%** Net Interest Income and Margin Performance | Metric | Q2 2025 | Q2 2024 | Q1 2025 | | :--- | :--- | :--- | :--- | | Net Interest Income | $123.73 M | $103.27 M | $118.79 M | | Net Interest Margin (Tax Equiv.) | 3.81% | 3.48% | 3.74% | - Average interest-earning assets grew to **$13.34 billion**, up from **$12.23 billion** in the same quarter a year ago[2](index=2&type=chunk) [Credit Quality and Provision for Credit Losses](index=1&type=section&id=Credit%20Quality%20and%20Provision%20for%20Credit%20Losses) Credit quality showed decreased provisions for credit losses, despite an increase in net charge-offs and classified loans Credit Quality Indicators (Q2 2025 vs. Q2 2024) | Indicator | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Provision for Credit Losses | $3.13 M | $5.89 M | | Allowance for Credit Losses | $102.79 M | $95.17 M | | Allowance / Loans | 1.27% | 1.27% | | Net Charge-offs | $720 K | $302 K | | Nonperforming Assets / Loans & Foreclosed Assets | 0.79% | 0.81% | [Noninterest Income](index=1&type=section&id=Noninterest%20Income) Noninterest income grew modestly, primarily driven by increased trust fee income and improved mortgage income - Trust fee income increased to **$12.75 million** from **$11.71 million** YoY, as trust assets managed grew to **$11.46 billion**[5](index=5&type=chunk) - Mortgage income rose to **$4.13 million** from **$3.69 million** YoY due to improved origination volume and margins[10](index=10&type=chunk) - Other noninterest income decreased due to a one-time **$723 thousand** BOLI settlement payment recognized in Q2 2024[10](index=10&type=chunk) [Noninterest Expense and Efficiency](index=2&type=section&id=Noninterest%20Expense%20and%20Efficiency) Noninterest expense increased due to higher personnel and technology costs, yet the efficiency ratio improved significantly Expense and Efficiency (Q2 2025 vs. Q2 2024) | Metric | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Total Noninterest Expense | $71.74 M | $65.01 M | | Salary, Commissions, & Benefits | $42.58 M | $37.47 M | | Efficiency Ratio | 44.97% | 47.41% | - The increase in salary costs was driven by merit-based pay increases, higher profit sharing, and incentive accruals tied to increased net income[10](index=10&type=chunk) - Other expense increases were noted in software amortization due to investments in new loan origination and account opening platforms[10](index=10&type=chunk) [Balance Sheet and Capital Position](index=2&type=section&id=Balance%20Sheet%20and%20Capital%20Position) The company's balance sheet expanded, with total assets, loans, and deposits showing healthy growth [Asset, Loan, and Deposit Growth](index=2&type=section&id=Asset,%20Loan,%20and%20Deposit%20Growth) Total assets, loans, and deposits all grew significantly year-over-year, reflecting robust balance sheet expansion Balance Sheet Growth (as of June 30) | Metric | 2025 | 2024 | | :--- | :--- | :--- | | Total Assets | $14.38 B | $13.16 B | | Total Loans | $8.07 B | $7.52 B | | Deposits & Repurchase Agreements | $12.50 B | $11.55 B | [Shareholders' Equity and Capital Ratios](index=2&type=section&id=Shareholders'%20Equity%20and%20Capital%20Ratios) Shareholders' equity increased, benefiting from reduced unrealized losses on securities, maintaining strong capital ratios - Shareholders' equity grew to **$1.74 billion** at June 30, 2025, from **$1.52 billion** at June 30, 2024[8](index=8&type=chunk) - The unrealized loss on the securities portfolio (net of tax) decreased to **$373.46 million** from **$441.56 million** YoY[8](index=8&type=chunk) Key Capital Ratios (as of June 30, 2025) | Ratio | Value | | :--- | :--- | | Common equity Tier 1 capital ratio | 19.16% | | Tier 1 capital ratio | 19.16% | | Total capital ratio | 20.35% | | Tier 1 leverage ratio | 12.61% | [Consolidated Financial Statements and Selected Data](index=5&type=section&id=Consolidated%20Financial%20Statements%20and%20Selected%20Data) This section provides detailed unaudited consolidated financial statements and supplementary data tables for analysis [Consolidated Financial Summary (Quarterly)](index=5&type=section&id=Consolidated%20Financial%20Summary%20(Quarterly)) Presents key unaudited consolidated financial data for Q2 2025 and preceding quarters, including balance sheet and income statement Q2 2025 Financial Summary | Metric | Q2 2025 (in thousands) | Q1 2025 (in thousands) | Q2 2024 (in thousands) | | :--- | :--- | :--- | :--- | | **Balance Sheet** | | | | | Total Assets | $14,376,841 | $14,312,114 | $13,164,075 | | Net Loans | $7,972,152 | $7,844,531 | $7,424,563 | | Total Deposits | $12,448,416 | $12,466,771 | $11,409,157 | | Shareholders' Equity | $1,737,352 | $1,680,261 | $1,519,026 | | **Income Statement** | | | | | Net Interest Income | $123,730 | $118,789 | $103,273 | | Net Income | $66,658 | $61,346 | $52,485 | | **Per Share Data** | | | | | Diluted EPS | $0.47 | $0.43 | $0.37 | | Book Value | $12.14 | $11.75 | $10.63 | | **Performance Ratios** | | | | | Return on Average Assets | 1.89% | 1.78% | 1.61% | | Net Interest Margin (TE) | 3.81% | 3.74% | 3.48% | [Consolidated Financial Summary (Year-to-Date)](index=6&type=section&id=Consolidated%20Financial%20Summary%20(Year-to-Date)) Presents unaudited consolidated income statement and performance ratios for the six months ended June 30, 2025 and 2024 Six Months Ended June 30 Financial Summary | Metric | 2025 (in thousands) | 2024 (in thousands) | | :--- | :--- | :--- | | Net Interest Income | $242,519 | $203,514 | | Net Income | $128,004 | $105,882 | | Diluted EPS | $0.89 | $0.74 | | Return on Average Assets | 1.83% | 1.62% | | Net Interest Margin (TE) | 3.78% | 3.41% | | Efficiency Ratio | 45.65% | 47.88% | [Selected Financial Data (Credit & Loans)](index=7&type=section&id=Selected%20Financial%20Data%20(Credit%20%26%20Loans)) Provides detailed breakdowns of credit quality, loan composition, and nonperforming asset trends over recent quarters Loan Portfolio Composition (June 30, 2025) | Loan Category | Amount (in thousands) | % of Total | | :--- | :--- | :--- | | Commercial | $1,508,291 | 18.7% | | Real Estate | $5,632,974 | 69.8% | | Consumer | $847,546 | 10.5% | | Agricultural | $86,133 | 1.1% | | **Total Loans** | **$8,074,944** | **100.0%** | Nonperforming Assets (June 30, 2025) | Metric | Amount (in thousands) | | :--- | :--- | | Nonaccrual loans | $63,142 | | Total nonperforming loans | $63,219 | | Foreclosed assets | $489 | | **Total nonperforming assets** | **$63,708** | | As a % of loans and foreclosed assets | 0.79% | [Selected Financial Data (Capital & Operations)](index=8&type=section&id=Selected%20Financial%20Data%20(Capital%20%26%20Operations)) Details capital ratios and granular breakdowns of noninterest income and expense components for various periods Noninterest Income Breakdown (Q2 2025) | Category | Amount (in thousands) | | :--- | :--- | | Trust fees | $12,746 | | Service charges on deposits | $6,126 | | Debit card fees | $5,218 | | Gain on sale and fees on mortgage loans | $4,126 | | Other | $4,657 | | **Total Noninterest Income** | **$32,873** | Noninterest Expense Breakdown (Q2 2025) | Category | Amount (in thousands) | | :--- | :--- | | Salaries, commissions and employee benefits | $42,575 | | Software amortization and expense | $4,020 | | Net occupancy expense | $3,600 | | Debit card expense | $3,308 | | Other | $18,232 | | **Total Noninterest Expense** | **$71,735** | [Average Balances and Net Interest Margin Analysis](index=10&type=section&id=Average%20Balances%20and%20Net%20Interest%20Margin%20Analysis) Contains detailed tables analyzing average asset and liability balances, interest income/expense, and net interest margin calculations Six Months Ended June 30, 2025 vs 2024 - Average Balances | Metric | 2025 (Avg. Balance) (in thousands) | 2024 (Avg. Balance) (in thousands) | | :--- | :--- | :--- | | Total Interest-Earning Assets | $13,249,332 | $12,295,350 | | Total Interest-Bearing Liabilities | $9,007,633 | $8,292,131 | | Net Interest Margin (TE) | 3.78% | 3.41% | [Company Information and Disclosures](index=2&type=section&id=Company%20Information%20and%20Disclosures) This section provides background on First Financial Bankshares, Inc. and standard forward-looking statements disclaimer [About First Financial Bankshares, Inc.](index=2&type=section&id=About%20First%20Financial%20Bankshares,%20Inc.) First Financial Bankshares, Inc. is a Texas-based financial holding company operating 79 banking locations and other subsidiaries - The company is a Texas-based financial holding company with **79 banking locations**, a trust company, and a technology services subsidiary[9](index=9&type=chunk) - The company's stock trades on The NASDAQ Global Select Market under the ticker symbol FFIN[11](index=11&type=chunk) [Forward-Looking Statements](index=4&type=section&id=Forward-Looking%20Statements) The report contains forward-looking statements subject to risks and uncertainties, with actual results potentially differing materially - The report includes forward-looking statements that are subject to risks and uncertainties, meaning actual results could differ materially[13](index=13&type=chunk) - Key risks include competition, interest rate policies, economic changes, and other factors described in SEC filings[13](index=13&type=chunk) ```

ABILENE, Texas, July 17, 2025 /PRNewswire/ -- First Financial Bankshares, Inc. (the "Company," "we," "us" or "our") (NASDAQ: FFIN) today reported earnings of $66.66 million for the second quarter of 2025 compared to earnings of $52.49 million for the same quarter a year ago and $61.35 million for the quarter ended March 31, 2025. Basic and diluted earnings per share were $0.47 for the second quarter of 2025 compared with $0.37 for the second quarter of 2024 and $0.43 for the linked quarter."Our second quart ...

Group 1 - The stock of First Financial Bankshares, Inc. (FFIN) is experiencing significant attention due to high implied volatility in the options market, particularly for the Jul 18, 2025 $25.00 Call option [1] - Implied volatility indicates the market's expectation of future price movement, suggesting that investors anticipate a significant change in the stock's price, potentially due to an upcoming event [2] - First Financial Bankshares holds a Zacks Rank 2 (Buy) in the Banks - Southwest Industry, which is in the top 9% of the Zacks Industry Rank, indicating a positive outlook from analysts [3] Group 2 - Over the past 60 days, one analyst has raised their earnings estimate for the current quarter from 44 cents per share to 45 cents, with no downward revisions, reflecting a positive sentiment [3] - The high implied volatility may present trading opportunities, as seasoned options traders often seek to sell premium on options with elevated implied volatility, aiming for the underlying stock to not move as much as expected at expiration [4]

Group 1 - The stock of First Financial Bankshares, Inc. (FFIN) is experiencing significant attention due to high implied volatility in the options market, particularly for the July 18, 2025 $25 Call option [1] - Implied volatility indicates the market's expectation of future price movement, suggesting that investors anticipate a significant price change or an upcoming event that could lead to a rally or sell-off [2] - First Financial holds a Zacks Rank 2 (Buy) in the Banks – Southwest industry, which is in the top 7% of the Zacks Industry Rank, indicating a positive outlook despite no recent increases in earnings estimates from analysts [3] Group 2 - The current implied volatility for First Financial could signal a developing trading opportunity, as options traders often seek to sell premium on options with high implied volatility to benefit from time decay [4]

Financial Performance - Net earnings for Q1 2025 were $61,346 thousand, compared to $53,397 thousand in 2024, reflecting a growth of 14.8%[15] - Net interest income for the three months ended March 31, 2025, was $118,789 thousand, a 18.5% increase from $100,242 thousand in the same period of 2024[15] - Comprehensive earnings for Q1 2025 were $96,746 thousand, a substantial increase from $15,468 thousand in Q1 2024[17] - Net earnings for the three months ended March 31, 2025, were $61,346 thousand, an increase of 14.5% compared to $53,397 thousand for the same period in 2024[22] - The company reported a net increase in interest-bearing deposits of $359,085 thousand, compared to an increase of $238,947 thousand in the prior year[22] - The company declared cash dividends of $0.18 per share, totaling $25,754 thousand, consistent with the previous year's dividend[22] - The company repurchased and retired 101,337 shares at an average price of $26.99 per share under the previous stock repurchase authorization[29] - The company reported a total of $1 million in year-to-date gross charge-offs for non-auto loans, reflecting stable performance[104] Asset and Deposit Growth - Total assets increased to $14,312,114 thousand as of March 31, 2025, up from $13,191,158 thousand in 2024, representing an increase of 8.5%[13] - Total deposits rose to $12,466,771 thousand as of March 31, 2025, compared to $11,289,808 thousand in 2024, marking an increase of 10.5%[13] - Cash and cash equivalents at the end of the period reached $927,055 thousand, compared to $600,161 thousand at the end of the previous year[22] - Total loans held-for-investment as of March 31, 2025, were $7.95 billion, an increase of $32.51 million from December 31, 2024, and up $747.52 million year-over-year[187] Loan Portfolio and Credit Quality - The loan portfolio totaled $7,945,611,000 as of March 31, 2025, an increase from $7,229,410,000 in the same period of 2024[80] - Nonaccrual loans increased to $60,430,000 as of March 31, 2025, compared to $36,157,000 in 2024[82] - The allowance for credit losses was $101,080,000 as of March 31, 2025, up from $89,562,000 in 2024[80] - The total provision for loan losses for the three months ended March 31, 2025, was $2,991,000, combined with a provision for unfunded commitments of $537,000, totaling $3,528,000 reported under credit losses[85] - The total past due loans increased from $45,514,000 on March 31, 2024, to $63,829,000 on March 31, 2025, representing a significant increase of approximately 40%[105] Noninterest Income and Expenses - Noninterest income totaled $30,230 thousand for the three months ended March 31, 2025, up from $29,383 thousand in 2024, a growth of 2.9%[15] - Total noninterest expense for Q1 2025 was $70.34 million, compared to $63.94 million in the same period of 2024, with salaries and employee benefits increasing to $42.14 million[184] - The efficiency ratio improved to 46.36% in Q1 2025 from 48.37% in Q1 2024, indicating better management of noninterest expenses[182] Regulatory and Accounting Changes - ASU 2023-07 will require public entities to disclose significant expenses and segment items on an annual and interim basis starting in 2024, with no significant impact on financial statements expected[31] - ASU 2023-09 mandates more detailed income tax disclosures for public business entities, effective for annual reporting periods beginning after December 15, 2024, with no significant impact on financial statements anticipated[32] Stock and Shareholder Information - The company had 1,242,910 shares remaining for issuance under the 2021 Omnibus Stock and Incentive Plan as of March 31, 2025[125] - The outstanding stock options as of March 31, 2025, totaled 1,533,435 with a weighted average exercise price of $32.26[136] - The total fair value of shares vested during the three months ended March 31, 2025, was $26,000, compared to $46,000 for the same period in 2024, indicating a decrease of 43.5%[139] Tax and Interest Rates - The Company recorded an income tax expense of $13,810,000 for Q1 2025, compared to $11,480,000 for Q1 2024, with effective tax rates of 18.38% and 17.70% respectively[121] - The weighted average interest rate on borrowings was 3.06% for the first quarter of 2025, down from 4.36% in the same period of 2024[209] Market and Economic Conditions - The Federal Reserve's interest rate adjustments included a decrease of 50 basis points in September 2024, impacting the target rate range to 4.25% to 4.50% as of March 31, 2025[177] - The company has enhanced stress testing and loan review activities to mitigate interest rate reset risk due to the current interest rate environment[192]

Core Viewpoint - First Financial Bankshares, Inc. has appointed James Hinton as President of First Financial Mortgage, highlighting his extensive experience in the mortgage finance industry and his potential to drive growth within the company [1][2]. Company Overview - First Financial Bankshares, Inc. is headquartered in Abilene, Texas, and operates multiple banking regions with 79 locations across Texas [4]. - The company also includes First Financial Trust & Asset Management Company and First Technology Services, Inc. [4][5]. Leadership Appointment - James Hinton brings over 40 years of leadership experience in the mortgage finance sector, having previously led his family's mortgage company and held significant roles in other financial institutions [2]. - Hinton is a graduate of Southwestern Methodist University and is actively involved in community service as a certified SCORE mentor [3].

ABILENE, Texas, April 29, 2025 /PRNewswire/ -- First Financial Bankshares, Inc. (NASDAQ: FFIN) – In connection with the 2025 Annual Shareholders' Meeting, the Board of Directors of First Financial Bankshares, Inc. today declared a $0.19 per share cash dividend for the second quarter, which represents a 5.6 percent increase and will be paid to shareholders of record on June 16, 2025, with payment set for July 1, 2025.At the Annual Shareholders' Meeting, shareholders elected thirteen members to the Board of D ...