First Financial Bankshares(FFIN) - 2025 Q3 - Quarterly Results

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]