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].

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]

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]