First Financial Bankshares(FFIN) - 2025 Q4 - Annual Results

Financial Performance - For Q4 2025, First Financial Bankshares reported earnings of $73.31 million, up from $52.27 million in Q3 2025 and $62.32 million in Q4 2024, with diluted earnings per share at $0.51 compared to $0.36 and $0.43 respectively[1][2] - For the year ended December 31, 2025, net income was $253.58 million, reflecting a 13.45% increase from $223.51 million in 2024, with diluted earnings per share rising to $1.77 from $1.56[2] - Net interest income for the year ended December 31, 2025, was $500,887 thousand, an increase of 17.3% compared to $426,741 thousand in 2024[19] - Noninterest income for the year ended December 31, 2025, was $130,716 thousand, up from $123,989 thousand in 2024, marking a growth of 5.5%[19] - The efficiency ratio improved to 45.53% in 2025 from 47.23% in 2024, indicating better cost management[19] - Return on average assets for 2025 was 1.76%, slightly up from 1.68% in 2024[19] - Return on average equity increased to 14.59 in 2025, compared to 14.51 in 2024, showing enhanced profitability[19] Asset and Loan Growth - Total assets grew to $15.45 billion as of December 31, 2025, compared to $13.98 billion at the end of 2024[9] - Loans increased by $245.18 million, or 3.10%, to $8.16 billion as of December 31, 2025, compared to $7.91 billion in 2024[9] - Average interest-earning assets increased to $14.08 billion in Q4 2025, up from $12.86 billion in Q4 2024[3] - Total assets increased to $15,446,476 thousand as of December 31, 2025, up from $14,841,528 thousand in the previous quarter, representing a growth of 4.1%[17] - The company reported a significant increase in loans from $7,516,352 in 2024 to $8,123,368 in 2025, with interest income rising from $505,176 to $546,972[29] Deposits and Equity - Deposits and Repurchase Agreements totaled $13.41 billion, reflecting a growth of $1.25 billion, or 10.26%, from December 31, 2024[9] - Shareholders' equity rose to $1.92 billion as of December 31, 2025, compared to $1.61 billion in 2024, driven by growth in retained earnings[10] - Shareholders' equity increased from $1,539,947 in 2024 to $1,738,615 in 2025, indicating strong financial health[29] Credit Quality - The allowance for credit losses was $105.54 million, or 1.29% of total loans, as of December 31, 2025, compared to $98.33 million or 1.24% in 2024[5] - Nonperforming assets as a percentage of loans and foreclosed assets decreased to 0.69% as of December 31, 2025, down from 0.80% a year earlier[6] - The provision for credit losses increased to $28,609 thousand in 2025, compared to $13,821 thousand in 2024, indicating a rise of 106.5%[19] - The net charge-offs (recoveries) to average total loans (annualized) was 0.02%, significantly lower than 1.07% in the previous quarter[21] - The total nonperforming assets as a percentage of loans held-for-investment and foreclosed assets was 0.69%, slightly down from 0.71% in the previous quarter[21] Expenses and Dividends - Total noninterest expense rose to $293,391 in 2025, compared to $265,063 in 2024, marking an increase of 10.7%[25] - Salaries, commissions, and employee benefits increased to $162,082 in 2025, up from $143,830 in 2024, reflecting a rise of 12.6%[25] - Cash dividends declared increased to $0.75 per share in 2025 from $0.72 in 2024, reflecting a commitment to returning value to shareholders[19] Market and Share Performance - The market value per share decreased to $29.87 in 2025 from $36.05 in 2024, indicating a shift in market perception[19]