#United States #earnings report #Abilene #First Financial Bankshares #NASDAQ FFIN

First Financial Bankshares Reports Record Earnings

First Financial Bankshares, Inc., based in Abilene, Texas, has made headlines with its latest financial results, revealing a robust earning performance for the fourth quarter and the entire year ending December 31, 2025. The bank reported earnings of $73.31 million for the fourth quarter of 2025, marking a significant increase from $52.27 million in the prior quarter and $62.32 million from the same period last year.

With diluted earnings per share standing at $0.51 for Q4 2025, up from $0.36 in Q3 2025, investors and analysts are excited about what these figures mean for the bank's future. For the entire year, the company's net income surged to $253.58 million, translating to $1.77 per diluted share, an increase of 13.45% compared to $223.51 million in 2024.

According to F. Scott Dueser, Chairman and CEO, the strong deposit growth during the quarter sets a solid foundation for continuing to expand their loan and securities offerings in 2026. Dueser highlighted that the bank's organic balance sheet growth reached nearly $1.50 billion, a testimony to the effective management and increased earning assets, which allowed them to keep net interest income on the rise.

In the fourth quarter, net interest income increased to $131.37 million, compared to $127.00 million in Q3 2025 and $116.12 million in Q4 2024. The bank's net interest margin also improved slightly to 3.81% from 3.80% in the previous quarter, indicating a healthy operational efficiency amid changing market conditions.

In a notable shift, the bank recorded a credit provision reversal of $2.49 million during the fourth quarter, contrasting with previous provisions for credit losses, illustrating solid asset management and risk assessment.

First Financial Bankshares has remained diligent in maintaining a low level of nonperforming assets, which stood at 0.69% at the end of 2025, slightly improved from 0.80% a year earlier. The bank's allowance for credit losses totaled $105.54 million, or 1.29% of total loans held-for-investment, showing a cautious yet optimistic outlook.

The noninterest income also exhibited positive growth with figures reaching $33.35 million for Q4, an increase from $30.98 million a year prior. This uptick can be attributed to the rise in mortgage-related fees and customer trust fee income, reflecting increased loan origination volumes and stronger asset management.

On the expense front, noninterest expenses climbed to $77.65 million in Q4 compared to $70.10 million a year ago, primarily owing to rising salaries and operational costs. As the bank invests further in its workforce and technology, these figures are expected to align with its growth strategy.

The efficiency ratio, an essential measure of profitability, improved slightly to 46.10% from 46.81% year-over-year, reflecting the bank's increasing net interest income.

As of December 31, 2025, First Financial's total assets reached $15.45 billion, climbing from $13.98 billion the previous year. This asset growth was fueled by a substantial jump in deposits and repurchase agreements, which surged to $13.41 billion, emphasizing the bank's strong market presence.

Equity for shareholders stood at $1.92 billion, driven primarily by retained earnings' growth, illustrating the company's commitment to shareholder value and equity health.

In conclusion, First Financial Bankshares has reported impressive fourth quarter and annual earnings, marked by robust deposit growth and an impressive increase in net income. With careful management of its resources and a focus on customer satisfaction, the bank aims to take advantage of future opportunities, ensuring it remains a key player in the financial services sector. As they look ahead to 2026, the bank's leadership is optimistic about sustaining this upward trajectory and continuing to fulfill its commitment to its stakeholders.