#United States #Abilene #First Financial #Q3 2026

First Financial Bankshares Reports Record Earnings for Q3 2026

First Financial Bankshares, Inc., based in Abilene, Texas, has announced remarkable earnings of $74.31 million for the third quarter of 2026. This demonstrates a significant increase compared to $52.27 million in the same quarter last year and a small growth from the previous quarter's earnings of $71.89 million. The diluted earnings per share for this quarter reached $0.52, up from $0.36 in Q3 2025.

David Bailey, President and CEO of First Financial Bankshares, expressed satisfaction over the record earnings, attributing this success largely to the ongoing expansion of the company’s net interest margin, which now sits at 3.91%. He emphasized the company's focus on disciplined balance sheet growth and prudent risk management as they approach the last quarter of the year. In commitment to their regional development, the bank plans to launch a new full-service branch in Bee Cave, Texas, marking an exciting continuation of its expansion strategy across Texas.

The bank's net interest income also showed a positive trend, amounting to $138.51 million this quarter, compared to $127.00 million a year prior. Average interest-earning assets reached $14.43 billion, compared to $13.60 billion at the same time last year.

While growth has been impressive, the company took proactive measures by recording a provision for credit losses of $2.03 million for this quarter, a significant reduction from $24.44 million last year. This decline reflects the bank's effective management of credit risk. The total allowance for credit losses at the end of September 2026 stood at $113.89 million, representing 1.33% of loans held for investment. This highlights the bank's solid position in maintaining credit quality in the face of potential economic challenges.

Notably, the bank's noninterest income saw an increase, reaching $35.64 million, an uptick from $34.26 million year-on-year. One significant area of growth was in Wealth Management fee income, which rose to $14.49 million, buoyed by new account acquisitions and increased revenues from mineral fees due to the surging oil and gas prices. However, there was a slight decrease in mortgage income, which fell to $4.18 million, attributed to rising long-term interest rates affecting mortgage volume and margins.

Operating efficiently, First Financial Bankshares reported a noninterest expense of $81.05 million, an increase from $73.67 million in the same quarter last year. This rise corresponds with rising costs across salaries, commissions, and employee benefits. The efficiency ratio for this quarter was 45.59%, slightly deteriorating from 44.74% in Q3 2025, indicating that the bank's operational efficiency remains a priority.

As of the third quarter's conclusion on September 30, 2026, First Financial Bankshares showcased total assets of $15.16 billion, up from $14.84 billion year-over-year. An impressive growth trajectory is visible in the loan portfolio, which rounded out to $8.54 billion compared to $8.24 billion the previous year; reflecting a 6.24% annualized growth.

With shareholder equity pegged at $1.83 billion, the bank continues to maintain strong capital ratios, ensuring resilience against economic fluctuations. The company is traded publicly on NASDAQ under the ticker FFIN, reaffirming its dedication to providing value to shareholders.

In summary, First Financial Bankshares not only marks a successful quarter but also reinforces its position as an emerging player in the Texas banking landscape, driven by prudent management, a solid financial base, and an aggressive expansion strategy that aims to reach more customers in diverse markets throughout the state.