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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].

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) ```

Financial Performance - First Financial Bankshares, Inc. reported earnings of $66.66 million for Q2 2025, a 27% increase from $52.49 million in Q2 2024 and an increase from $61.35 million in Q1 2025 [1][2] - Basic and diluted earnings per share were $0.47 for Q2 2025, compared to $0.37 in Q2 2024 and $0.43 in Q1 2025 [1][2] Revenue and Income - Net interest income for Q2 2025 was $123.73 million, up from $103.27 million in Q2 2024 and $118.79 million in Q1 2025 [2] - The net interest margin increased to 3.81% in Q2 2025 from 3.48% in Q2 2024 and 3.74% in Q1 2025, primarily due to higher average yields on loans and securities [2] - Noninterest income for Q2 2025 was $32.87 million, compared to $31.27 million in Q2 2024 [5][11] Credit Quality - The provision for credit losses was $3.13 million in Q2 2025, down from $5.89 million in Q2 2024 [3] - Net charge-offs totaled $720 thousand in Q2 2025, compared to $302 thousand in Q2 2024 [4] - Nonperforming assets as a percentage of loans and foreclosed assets were 0.79% as of June 30, 2025, slightly down from 0.81% a year earlier [4][14] Asset and Liability Management - Total assets increased to $14.38 billion as of June 30, 2025, from $13.16 billion a year earlier [6] - Loans held-for-investment totaled $8.07 billion, up from $7.52 billion in June 2024, with a year-to-date growth of 4.12% [6] - Deposits and repurchase agreements reached $12.50 billion, a 5.57% increase year-to-date [6] Shareholder Equity - Shareholders' equity was $1.74 billion as of June 30, 2025, compared to $1.52 billion a year earlier [7] - The unrealized loss on the securities portfolio decreased to $373.46 million from $441.56 million a year earlier [7] Operational Efficiency - The efficiency ratio improved to 44.97% in Q2 2025 from 47.41% in Q2 2024, largely due to increased net interest income [5][11] - Noninterest expenses totaled $71.74 million in Q2 2025, up from $65.01 million in Q2 2024, driven by higher salary and benefit costs [5][11]

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]