#United States #Abilene #FFIN #First Financial Bank #third quarter earnings

First Financial Bankshares Reports Third Quarter 2025 Earnings

On October 23, 2025, First Financial Bankshares, Inc. (symbol: FFIN) announced its earnings for the third quarter of 2025, reporting a total of $52.27 million compared to $55.31 million during the same quarter last year and $66.66 million from the previous quarter ending June 30, 2025. The diluted earnings per share decreased to $0.36 from $0.39 in the prior year's quarter.

F. Scott Dueser, Chairman and CEO of First Financial Bankshares, remarked, “This quarter experienced significant challenges due to a $21.55 million credit loss attributed to fraudulent activities linked to a commercial borrower. However, we have thoroughly reviewed our portfolio for any systemic issues and consider this incident isolated. We have taken legal action and are cooperating with law enforcement.” He emphasized optimism for the final quarter of the year, focusing on customer satisfaction and core earnings that showed a nearly 12% increase year-to-date compared to 2024.

Key Financial Highlights

The details of First Financial's third-quarter financial performance indicate some significant trends:

• - Net Interest Income stood at $127.00 million, up from $107.11 million a year ago and slightly higher than $123.73 million from the second quarter of 2025.
• - The net interest margin, on a taxable equivalent basis, improved to 3.80%, compared to 3.50% in Q3 2024 and 3.81% in Q2 2025.
• - Average interest-earning assets reached $13.60 billion, highlighting a robust growth from $12.48 billion last year.

To mitigate the impact of credit issues, First Financial recorded a provision for credit losses amounting to $24.44 million this quarter, an increase from $6.12 million last year and $3.13 million the last quarter. As of September 30, 2025, the allowance for credit losses totaled $105.96 million, equivalent to 1.29% of loans held for investment.

Continued Growth Despite Setbacks

Notably, net charge-offs swelled to $22.34 million compared to just $786,000 a year prior. The bank's nonperforming assets also improved marginally to 0.71% of loans and foreclosed assets, down from 0.83% a year earlier. Additionally, classified loans totaled $252.96 million, reflecting an increase from $229.92 million in the previous year.

Meanwhile, noninterest income increased to $34.26 million, up from $32.36 million a year ago. Changes in particular areas exhibit a strong push towards improving profitability:

• - Mortgage income grew to $4.38 million from $3.36 million due to higher origination volumes and restructuring within the mortgage team.
• - Trust fee income also saw a positive change, rising to $12.95 million due to an increase in assets under management which reached $12.05 billion.

The noninterest expense for the quarter was $73.67 million, compared to $66.01 million last year. Employee-related costs were a significant factor, totaling $42.61 million, reflecting an increase mainly due to higher salaries. Operating costs, excluding those for salaries, also saw considerable growth.

Despite the challenges faced this quarter, First Financial Bankshares has managed to achieve a 44.74% efficiency ratio, an improvement from 46.45% the prior year, primarily due to increased net interest income. With consolidated total assets reaching $14.84 billion, up from $13.58 billion year on year, the bank shows solid underlying financial health.

Moreover, shareholders' equity increased to $1.83 billion, marking growth from $1.66 billion in the previous year, despite an unrealized loss in the securities portfolio, which slightly decreased from $373.46 million last quarter.

As First Financial Bankshares moves into the last quarter of 2025, it aims to recover losses while focusing on maintaining customer trust and growing its core operations. With numerous strategic investments and commitments to legal resolution, the bank looks forward to concluding with a strong performance despite the setbacks encountered this quarter.